Sunday, October 26, 2025

Czech Central Bank Governor Calls for More Gold Holdings, Bigger Portfolio to Boost Bank’s Profits

The incoming governor of the Czech National Bank is calling for elevated interest rates, beefing up the bank’s stock portfolio, and increasing gold holdings, in an effort to avoid demand-side inflation all while boosting profits.

According to new Czech National Bank chief Ales Michl, the central bank needs to maintain interest rates above standard levels, support the country’s government in reducing budget deficits, and well as prevent a sharp jump in wage growth in order to stave off supply-side inflationary effects from spilling over into demand-side inflation. “Supply-side inflation will fly through the economy and nobody in the world can do anything about it,” he said, as cited by Reuters.

“The Czech National Bank should communicate it as an exception from fulfilling the inflation target,” Michl continued, adding that he expects inflation to peak at 15% by July, before subsiding to the 2% target rate within two years. Since last summer, Czech’s central bank has increased borrowing costs by 550 basis points to 5.75%, with a further rate hike expected on June 22, during outgoing Governor Jiri Rusnok’s final policy meeting.

Michl also said he would boost the bank’s profitability over the next few years by increasing the proportion of stocks in its portfolio from a current 16% to 20%, referring to similar moves by the Swiss and Israeli central banks. In addition, the governor said he also wants to significantly raise the bank’s gold holdings to over 100 tonnes, up from the current 11 tonnes in an effort to boost diversification. Michl’s new monetary policy framework will help the central bank in covering previous losses as well as replenish the reserve fund.


Information for this briefing was found via Reuters. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

This Is Why the Gold Run Is Not Done! | Peter Marrone – Allied Gold

P2 Gold: The Multi BILLION Gabbs PEA

A Gold District Hidden In Plain Sight!? | Michael Bennett – Altamira Gold

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

PERSISTENT Inflation Prevails: US Consumer Prices Soar by Most Since 1982

Recall, we were told to stay calm on Friday and ignore the Labour Department’s latest...

Saturday, December 11, 2021, 10:59:00 AM

Inca One: Growth Continues For This Gold Processor – The Daily Dive

Joining us again on The Daily Dive is Edward Kelly, CEO of Inca One Gold...

Thursday, September 30, 2021, 01:30:00 PM

Newmont To Sell Off Multiple Canadian Assets, Cut Jobs

Newmont Corp (NYSE: NEM) has announced plans to divest six non-core assets and two non-core...

Friday, February 23, 2024, 02:17:00 PM

Dalio’s Bridgewater Bets Big on Gold

Bridgewater Associates, the world’s largest hedge fund, has opened a new $318.8 million position in...

Friday, May 16, 2025, 10:47:00 AM

Why Did Newcrest Reject Newmont’s $16.9-Billion Acquisition Offer?

Australian miner Newcrest Mining (TSX: NCM) announced last night that it has rejected the acquisition...

Thursday, February 16, 2023, 11:05:00 AM