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CNB Likely to Keep Rates Unchanged

CZECHIA
  • The CNB is likely to keep its benchmark rate steady at 7% on August 4, marking the first pause since the beginning of the tightening cycle in June 2021.
  • The ‘new’ CNB board seems to be keener on favouring FX interventions to support the koruna instead of rising rates as the economic outlook keeps deteriorating.
  • Median estimate is standing at 7.25%, with analysts’ consensus split between no change and a 25bps hike.
  • CNB Governor Michl will hold news conference at 3.45pm CET.

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