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Cabinet To Discuss National Defence Strategy, Random Border Checks

CZECHIA
  • Seznam Zprawy circulated comments from Patria Finance's Dominik Rusinko and CSOB's Magdalena Kutnerova, who noted that the koruna has become more vulnerable after the CNB ended its FX intervention regime. This may have magnified the impact of regional spillover from Poland's surprising 75bp rate cut in September. Patria Finance's Jan Bures added that he expects further selling pressure in 1H2024 amid the expected narrowing of Czechia's interest-rate differential with the EZ and US.
  • Slovak President Zuzana Caputova asked SMER leader Robert Fico to form government after his party won a plurality of votes in the recent general election. Fico's return to power may cause tensions with neighbouring Czechia over issues including support for Ukraine.
  • Hospodarske Noviny reported that the government may raise highway tolls for trucks by 15% next year as part of its efforts to curb budget deficits.
  • The Cabinet meets this morning to discuss regulation of investment companies and funds, random border controls with Slovakia as well as the national defence strategy.

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