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CNB Governor Rusnok Supporting Another 'Slight Increase' For Next Meeting

CZECHIA
  • PM Babis said in election debate this week that the government won't impose another lockdown as the country prepares for general elections next month.
  • CNB Governor Jiri Rusnok mentioned in an interview broadcast on TV Nova yesterday that he will support another 'slight increase' at the next meeting on September 30 amid rising wage inflation and 'can imagine' backing a rate hike at each of the two next meetings (after Sep 30).
  • Consensus is currently pricing in a 25bps rate hike at each of the last three meetings, which would increase the policy rate to 1.50% by year-end.
  • This morning, economic data showed that average real monthly wage rose 8.2% YoY in Q2 (vs. 5.7% exp.) and up from revised 1.1% the previous quarter.
  • Next key data to watch will be August CPI inflation, coming out on September 10.

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