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CNB Keeps Benchmark Rate On Hold As Expected

CZECHIA
  • As expected, the CNB decided to keep its benchmark rate steady at 0.25% as policymakers aim to maintain financial conditions as loose as possible.
  • Debates over rate hikes will likely start in August, implying that the CNB will be one the first central banks to start raising rates in 2021 in Western/Central/Eastern Europe (Norway on the list in DM).
  • Sell-sides are forecasting one to two hikes in H2 2021.
  • Press conference will follow at 2.45pm (London time).

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