PRAGUE (Reuters) – Czech National Bank Governor Ales Michl has received the highest level of security clearance from the state security office, a bank spokesperson said on Sunday, following criticism he may not be able to fill his mandate without it.
Michl, a board member at the bank since 2018 with second-tier “Secret” security clearance, had requested the highest “Top Secret” security clearance when he was picked to become governor in May last year. He had remained on “Secret” clearance since taking up the post in July.
The central bank said Michl received his certificate for “Top Secret” clearance on Friday, adding that the relevant security checks took place over the standard length of time allowed by law.
New President Petr Pavel had said earlier that a person without proper clearance could not stay in office, and Michl’s predecessor Jiri Rusnok has also been quoted in the media as saying it would be exceptional for a governor not to have top-level security clearance.
The central bank has said before that not having the top-level security status was not an obstacle to the governor filling his mandate, and the bank itself does not produce or handle “Top Secret” documents.
The central bank has been battling a surge in inflation to three-decade highs in the past year. It has held interest rates steady since Michl became governor despite some economists and organisations like the International Monetary Fund suggesting more rate hikes would quell inflation faster.
The key base rate stands at 7.00% after a year-long cycle of hikes totalling 675 basis points. Headline inflation eased to 16.7% year-on-year in February from 17.5%.
“This decline will continue in the coming months,” Michl said in the statement on Sunday, reiterating that a strong and stable crown, high interest rates for a longer period and reductions in the state deficit were needed to bring down inflation.
(Reporting by Jason Hovet; Editing by Hugh Lawson)
