Final Word from Thursday, December 15, 2022

CNB Gov. Aleš Michl told Newstream today that new mortgage borrowing was down y/y by 82% in Sept. and new corporate borrowing by 64%. Monetary policy is tight enough already, he said, and in six years the CNB board members will be seen as interest-rate hawks. For now, though, they are often seen as doves, and presidential candidate Danuše Nerudová is one of the many critics of Michl's nomination to the position and of his monetary policy. She told Euro magazine that as president she couldn't call for a CNB rate hike but that she can still do so as an economist and candidate. She took the side of savers in the debate about higher interest rates and said that the scales are very much weighted against them. It's an understandable policy for a mainstream economist, but it indicates that she's out of touch with less-fortunate voters who judge the state of the economy by the amount in their pocketbook. Unless she finds a way to get their votes, she'll remain a mainstream economist. [ Czech Republic Czech National Bank ]

Glossary of difficult words

interest-rate hawk - a person willing to allow interest rates to rise in order to keep inflation under control, even if it means sacrificing economic growth, consumer spending and employment;

interest-rate dove - a person who promotes monetary policies that usually involve low interest rates;

pocketbook - one's financial resources; a wallet, purse or handbag.

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