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CNB Likely To Keep Rates Unchanged Despite Positive Surprise In GDP

CZECHIA
  • The CNB is meeting on August 4 and is likely to keep its policy rate steady at 7% despite GDP data coming in better than expected on Friday.
  • The economic outlook has been constantly deteriorating since the start of the war, with PMI data falling below the 50-line threshold in July (46.8).
  • Median estimate is standing at 7.25%, with analysts’ consensus split between no hike and 25bps hike.
  • Market expectations have been fading in recent weeks, with the FRA 1Mx4M – Pribor 3M spread falling below 10bps in the end of July.

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