Central Bank Voted 4-3 To Keep Interest Rates Steady

Members voted 4-3 to keep the two-week repo rate unchanged at 7.00% today, the Bank Board said in a statement after its monetary policy meeting concluded today. The news that the on-hold decision was taken after a tight vote represents a hawkish surprise, given that almost all economists were expecting such an outcome. The three dissenters voted for a 25bp rate rise.

• During the ongoing press conference, Governor Ales Michl doubled down on his pushback against overdone rate-cut bets, calling them "premature." The official said that the policy rate will need to stay "at current or higher level" for longer, adding that the Bank Board discussed even bigger rate-hike proposals.
• Click here to see the key CNB documents:
  • Statement
  • Spring Forecasts
• The Czech Koruna turned bid on the back of a tight vote split and more hawkish than expected press conference with Governor Ales Michl. EUR/CZK last trades -0.107 at CZK23.488. CZGB yield curve has twist flattened as the short-end took a hit.