1. Czech Policy Maker Says Interest Rates Could Rise This Year
(http://www.businessweek.com/news/2010-06-14/czech-policy-maker-says-rates-could-rise-this-year-update1-.html)
High-level overview of article:
The Czech central bank may consider increasing interest rates before the end of the year if economic recovery is stronger than forecast, policy maker Eva Zamrazilova said.
Our take:
I really don’t see how these rate decreases are affecting businesses and consumers when they aren’t getting passed on by the banks. Can anyone illuminate me on this?
2. Czech National Bank says flat prices rose too high and should fall
(http://www.radio.cz/en/article/128944)
High-level overview of article:
A new report by the Czech National Bank warns that flats in the Czech Republic are overpriced in spite of recent falls and prices could slide still further. The report says rent and wage rises failed to keep pace with that price explosion, which started to put flats out of reach of ordinary earners.
Our take:
Wow, this is the exact opposite of what we expected would happen over the next 12 to 18 months. Is the cost of housing here really so unaffordable compared to other countries?
3. Czech Central Banker Says Growth to Boost Crown (CZK) Over Next Few Years
(http://www.iii.co.uk/news/?type=afxnews&articleid=7952624&subject=economic&action=article)
High-level overview of article:
The Czech economy will grow at a slower rate than in previous years, but will outpace developed EU states in coming years and raise the value of the crown in the long term, central bank policymaker Robert Holman was on Monday quoted as saying.
Our take:
This should be good additional motivation for investors to hold out for property prices and currency to improve before selling.
4. Czech Bank Leaves Rates Unchanged, Signals Stability
(http://www.businessweek.com/news/2010-06-23/czech-bank-leaves-rates-unchanged-signals-stability.html)
High-level overview of article:
The Czech central bank left its benchmark interest rate unchanged after an unexpected cut in May and said borrowing costs were likely to hold steady in the near term.
Our take:
Good news for investors with mortgages.
5. Confidence in Czech economy up by 0.6 point in June
(http://praguemonitor.com/2010/06/25/confidence-czech-economy-06-point-june)
High-level overview of article:
Confidence in the Czech economy grew slightly month-on-month in June, the composite confidence indicator adding 0.6 point against May, the Czech Statistical Office (CSU) said Thursday.
Our take:
Confidence is essential.
6. Wages in ČR to grow 3% in 2010, almost 5% in 2011
(http://praguemonitor.com/2010/06/25/wages-%C4%8Dr-grow-3-2010-almost-5-2011)
High-level overview of article:
The average nominal wage in the Czech Republic could grow by 2.1 to 3.1 percent this year and by 3.9 to 4.9 percent in 2011, the Ministry of Labour and Social Affairs has said.
Our take:
This would support the view of more pressure on the Czech real estate market.
7. Transactions on Czech real estate market down 46% in 2009
(http://praguemonitor.com/2010/06/25/transactions-czech-real-estate-market-down-46-2009)
High-level overview of article:
The volume of transactions on the Czech real estate market sank by 46 percent year-on-year to EUR512m (Kc13.2bn) last year, according to Trend Report 2010 of the Association for Real Estate Market Development (ARTN).
Our take:
With these kinds of numbers I would dare to say that we have reached the bottom.
Updated/Aktualizováno: July 22, 2014,