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CNB Minutes Shows That MPC Board Refrained From Bigger Hike To Avoid Surprising Market

CZECHIA
  • This morning, the CNB published the minutes of its June 23 meeting. As a reminder, 4 policymakers (out of 7) voted for a 25bps hike in order to curb inflationary pressures, Vojtech Benda sought a 50bps hike, while Oldrich Dedek and Ales Michl wanted to keep rates unchanged.
  • The MPC board refrained from a bigger hike in order to avoid surprising the market.
  • Yesterday, economic data showed that manufacturing PMI rose To 62.7 in June (more than 62.1 expected).
  • Non-resident holders (NRH) held 32.3% of CZK state bond at the end of May, down from 33.2% a month earlier according to the Finance Ministry.

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