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CNB Cuts Key Rate By 50bp, Charts Higher Rate Path

CZECHIA
  • The Czech National Bank (CNB) lowered the two-week repo rate by 50bp, as expected by all analysts surveyed by Bloomberg. The interest-rate outlook for this year and next was raised amid concerns about inflationary risks. Governor Ales Michl noted that "the Bank Board considers it necessary to maintain tight monetary policy and have a very cautious approach to further rate cuts."
  • The central bank released the opening section of its new Monetary Policy Report (MPR), including more details on the updated forecasts. The CNB's senior staffers and a Bank Board member will hold a meeting with analysts (in English, live-streamed online) at 10:00BST/11:00CEST to discuss the new macroeconomic projections.

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