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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
- CNB Governor Rusnok commented in MFD opinion column that he sees debate about pros and cons on more Czech rate hikes.
- Michl reiterated that bring inflation down was the board priority.
- Data on international reserves showed on Friday that the CNB sold an equivalent of 3.7bn in the FX market in May to ‘protect’ the currency; reserves also fell by 10bn USD in June, bringing the amount of international reserves down to 157.1bn USD (down from a high of 175.4bn USD in February). (see chart below).
- While the new board could be less keen on voting for more aggressive hikes to cool down inflation, it is possible that some policymakers vote for FX interventions to limit the downside risk on CZK as a depreciatiing currency keeps de-anchoring inflation expectations.
- Important data to watch this week will be CPI inflation, on July 13 expected to accelerate to 17.1%.
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.
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