Daily summary of the Czech economy: ČEZ, Toyota, Škoda auto, Amazon, Volkswagen, Moneta Money Bank and Air Bank(19 June 2025)

Overview of the latest economic events in the Czech Republic
The Czech economy recorded mixed signals. The Czech Statistical Office confirmed moderate GDP growth of 0.4 % in Q2, mainly due to stable domestic demand and a recovery in the services sector. Inflation continues to remain below 3 %, which is welcomed by both households and businesses. The Czech National Bank announced today that it is leaving the key interest rate unchanged at 4.75 %, with Governor Ales Michl saying that if inflation develops favourably, rates may be cut in the second half of the year. On the foreign exchange market, the koruna strengthened slightly against the euro to CZK 24.70/EUR. The energy sector continues to be challenged by high electricity prices, with CEZ announcing that it has sold part of its foreign division in Romania to Enel Romania for CZK 7.2bn.

Foreign investment
The Czech Republic continues to profile itself as an attractive destination for foreign investors. The Japanese carmaker Toyota has confirmed that it will invest CZK 12 billion in cooperation with Škoda Auto to expand the production of electric vehicles at the Kolín plant. According to CzechInvest, this is one of the largest investments in the field of electromobility in the Central European region in the last five years. US technology firm Amazon today announced the acquisition of Czech startup LogiChain, which specialises in optimising logistics processes using artificial intelligence. The value of the transaction is estimated at CZK 1.8 billion.

Significant events outside the Czech Republic with global impact
At the global level, investors are watching developments around the US Federal Reserve, which has hinted at the possibility of an interest rate cut as early as the autumn if further macro data confirm slowing inflation. The European Central Bank, on the other hand, is waiting and leaving rates unchanged. The price of Brent crude oil fell below USD 82 per barrel today after Saudi Arabia signalled an increase in production. This development gave some relief to European companies dependent on energy imports. At the same time, German carmaker Volkswagen confirmed that it has finalised the acquisition of a minority stake in Swedish battery maker Northvolt for EUR 250 million, which may indirectly affect the supply chain of Czech subcontractors.

In technology, investment fund SoftBank announced a new $5 billion investment in UK company Arm Holdings to accelerate the development of next-generation chips. Analysts say the move will also affect the European semiconductor market, where ON Semiconductor Czech Republic has a strong presence, having today signed an agreement to supply chips to European carmakers for the next five years.

Business transactions and acquisitions
In terms of the domestic market, a merger between two Czech financial institutions - Moneta Money Bank and Air Bank - was announced today, which will serve more than two million clients after the merger. The value of the transaction is estimated at CZK 25 billion and is considered to be one of the largest banking deals in recent years. In addition, developer group Penta Real Estate announced the sale of the Churchill Square office complex in Prague to a Singaporean investor for CZK 4.5 billion.

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