/ / www. cnb. cz / en / about _ cnb / cnblog / inflation - is - falling - an - interim - assessment - ofthe - disinflation - process - in - the - czech - republic / § we stressed that monetary policy was working and that interest rates would remain high for longer our approach to elevated inflation expectations during price stability after two years, cpi inflation was exactly 2 % in february, march and june of this year. it currently stands at 2. 2 %. at the same time, the inflation expectations of households appear to be elevated ( median at 5 %, mean at 11 % ). cpi inflation inflation perceived by households inflation expected by households ( 12 months ahead ) cnb repo rate ( % ) inflation target ( 2 % ) source : data collect, czech statistical office this time, we cannot rely on the two factors dragging down consumption. real incomes of households are recovering, and economic uncertainty, although still high, has decreased significantly. our approach : we have cautiously eased monetary policy from 7 % to 4. 25 % since december. we have been closely monitoring whether these expectations are having an impact on lending activity, consumption and wage negotiations. so far, the data shows no significant impact on consumption, which is slowly recovering. wage growth remained elevated at 6. 5 % in the second quarter of 2024, but appears to be slowing. lending activity is recovering moderately. we are taking a careful approach and communicating that markets should expect higher rates in the longer term than in the 10 years prior to covid.

addressing the medium - to longterm issues i have talked about. with the further evolution of economic and financial globalization, central banks should contribute to economic and price stability through the appropriate conduct of monetary policy, while also ensuring that financial markets and the financial system are both efficient and stable by providing liquidity and making sure that markets function properly. let me start with the second of these roles, namely, ensuring the efficiency and stability of financial markets and the financial system. as has become clear during the recent turmoil in global financial markets, liquidity provision by central banks plays a significant role in stabilizing financial markets. with the increase in the volume and complexity of cross - border flows of funds, coordination among central banks in their performance of this role is essential. behind the coordinated provision of funds by central banks in december, which i have already mentioned, there lay discussion among central banks and the attainment of a consensus about the economic situation and measures to alleviate it. i believe that the framework for liquidity provision introduced in japan to deal with the past financial crisis has proved instructive to other countries in designing appropriate measures. in addition to their provision of liquidity to markets under normal conditions, central banks stand ready to provide funds directly to individual financial institutions as the lender of last resort in cases, for example, when an institution is experiencing difficulties raising funds in the markets. given the globalization of financial services, such cases now require closer communication among the countries involved. it is, of course, important to respond ex post to market turmoil or fund - raising difficulties at individual financial institutions ; however, it is also vital to share ideas and develop appropriate systems prior to such incidents. more specifically, as the financial business becomes increasingly globalized, central banks must rigorously discuss how to ensure the international cooperation and communication needed to improve operational tools and collateral arrangements as well as to enhance the compatibility of their lender of last resort and macro - prudential policies. taking a longer - term perspective, we must also consider how each country can help improve the working of progressively globalized financial markets. given that of the various public authorities it is central banks which are closest to financial markets, they have a correspondingly important role to play in providing a steady response to the rapid globalization and growing technological sophistication of financial markets. next, i would like to turn to monetary policy. as globalization proceeds, assessment of the domestic economic and price situation increasingly demands that attention be paid to the influence of economic and