The Czech economy has not even recovered from the pandemic recession and yet has to cope with another shock—the war in Ukraine. This situation will further exacerbate the difficulties in supply chains and support the already highly inflationary environment. High inflation is also heavily eroding purchasing power and will considerably slow down this year’s economic growth. The CNB has been responding to inflation for three quarters of a year through tightening the monetary conditions. Nevertheless, the series of its rate hikes is probably approaching the end.