Inflation Report of the CNB (third quarter 1998)

The Czech National Bank publishes a quarterly Inflation Report to inform th e public about its monetary policy measures. The CNB is one of a growing nu mber of central banks to target inflation itself, and it considers transpar ency of monetary policy crucial in this context/regard. Inflation decelerated significantly in the third quarter of 1998, and fell to 8.8% in September. Net inflation, which is targeted by the Bank, even fe ll to 4.3%. This development:was helped by low domestic demand, falling imp ort prices, slow growth of nominal wages, and the strong koruna. The CNB wa s able to cut its key interest rate by 1.5% between July and September 1998 .