MNI BRIEF: Japan Nov Sentiment, Outlook Indexes Rise

MNI BRIEF: China Nov CPI Slows To 5-Month Low Of 0.2% Y/Y

MNI: PBOC Sets Yuan Parity Higher At 7.1870 Mon; -1.39% Y/Y

MNI: China CFETS Yuan Index Down 0.36% In Week of Dec 6

MNI: PBOC Net Injects CNY13.8 Bln via OMO Monday

MNI BRIEF: PBOC Increases Gold Reserves

MNI JAPAN Q3 GDP REV +0.3% Q/Q; PRELIM +0.2%; MEDIAN +0.2%

MNI: UNIV OF MICHIGAN CONSUMER SENTIMENT PRELIMINARY DEC INDEX 74.0

CANADA NOV IVEY PURCHASING MANAGERS INDEX 52.3 SA

MNI EXCLUSIVE: EU-Mercosur Deal Close, But Likely Short-Lived - Officials

AUSTRALIA: 2025 Election Outcome Looking More Uncertain According To Newspoll

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Bank Board's Tomas Holub Flags FX Developments As Inflationary Risk

CNB

The Czech National Bank (CNB) published the slides from Bank Board members Tomas Holub's presentation in which the official flagged koruna weakness as an inflationary risk. EUR/CZK continues to trade comfortably above the psychological 25.0 level and the central bank's 24.70 forecast for 1Q24, with the koruna refusing to recover towards those levels.

  • Holub said that core inflation was lower than the CNB forecast in January, even as food prices were slightly higher than expected, which helped bring headline inflation to +2.3% Y/Y (versus +3.0% expected) He added that the seasonal January repricing of goods and services returned to level consistent with the inflation target.
  • Holub said that the CNB's forecast assumes modest koruna appreciation to resume after the initial slight weakening, which will reflect an improvement in net exports of goods and services. On the other hand, the narrowing interest rate spread with the EZ will dampen appreciation pressures.
  • The official suggested that the current development of the exchange rate is a pro-inflationary risk. Other such risks include a slower fading of inflation expectations, service price growth inertia, interruptions in tradable goods disinflation, and the possible resumption of excessive credit activity.
BulletEM BulletEmerging Market NewsHomepage
BulletEM BulletEmerging Market NewsHomepage

To read the full story

Close

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.