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CNB Holub Favors Further Increase In Rates

CZECHIA
  • Yesterday, CNB member Holub commented that he favors further increase in rates rather than FX sales.
  • Governor Rusnok recently mentioned that the central bank may discuss whether to use FX reserves to fight inflation, as a weaker CZK is supporting inflation expectations.
  • With the FRA 1Mx4M currently trading at 44bps above the Pribor 3M, the market is currently pricing in a 25bps to 50bps hike at next week’s meeting on March 31.
  • The lower house of parliament will start a regular session in which lawmakers are expected to debate bills on tax breaks related to aid for Ukraine (BBG).
  • Former PM Babis was charged in fraud case over EU funds by Czech prosecutors.

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