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CNB Surprises Market By Raising Policy Rate By 75bps (vs. 50bps)

CZECHIA
  • The CNB decided to raise its policy rate by 75bps to 1.5% at today's meeting (vs. 50bps exp.).
  • The CZK has been strengthening following CNB decision.
  • EURCZK is down 20pips, gradually approaching its key support at 25.25.
  • A rising number of CNB members have mentioned in recent weeks that a bigger rate hike may be necessary to curb the inflationary pressures.

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