Czech central bank raises 2022 inflation forecast, cuts GDP outlook

PRAGUE (Reuters) - The Czech central bank on Thursday released the following forecasts in its updated macroeconomic outlook.

GDP 2022 2023

pct changed y/y 0.8 (3.0) 3.6 (3.4)

AVG 3-MO PRIBOR 2022 2023

pct changed y/y 7.0 (4.3) 5.1 (3.3)

AVG EXCHANGE RATE 2022 2023

CZK/EUR 24.2 (24.1) 24.3 (23.9)

AVG CONSUMER INFLATION 2022 2023

pct changed y/y 13.1 (8.5) 4.1 (2.3)

NOTE. Brackets denote previous forecasts published in Feb.

The forecast sees inflation at 3.8% in the second quarter of 2023, and at 2.7% in the third quarter of that year.

The previous inflation forecast released in February pegged annual CPI at 3.0% in the first quarter of 2023 and 2.3% in the second quarter of 2023.

The central bank always forecasts inflation for 12-18 months ahead, the time it believes it takes for monetary policy decisions to filter fully through to the economy.

However, at the May 5 meeting, the board considered also a scenario with a "more distant monetary policy horizon" which "abstracts from inflation, which is being directly affected by strong external price shocks", the central bank said.

(Reporting by Robert Muller)