Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
CZECHIA
- This morning, economic data showed that CPI inflation rose slightly higher than expected in June, +2.8% YoY (vs. 2.7% exp.) and down from 2.9% from the previous month.
- Even though inflation is still standing below the 3% CNB upper tolerance band, inflationary pressures could continue to intensify in the second half of this year amid rising consumer demand combined with accelerating wage growth.
- The CNB has started to tighten its monetary policy and raised interest rate by 0.25% to 0.5% last month for the first time since the pandemic, and will continue to gradually hike the policy rate in the coming months with Governor Jiri Rusnok recently signaling at least another two hikes for this year.
- Market is also expecting another two to three 25bps hikes in the second half of this year with the FRA 6Mx9M currently trading 68bps above Pribor 3M (see chart).
- Next CNB meeting will take place on August 5, and policymaker are very likely to raise the benchmark rate by another 25bps to 0.75%.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok