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CNB Raises 2021 Inflation Forecast To 3%

CZECHIA
  • Four Czech central bankers backed a 25bps hike at today's meeting, one sought 50bps hike and two voted for no change.
  • The CNB raised its 2021 inflation forecast to 3%, and to 2.8% for 2022.
  • Governor Rusnok commented in a press conference that the tightening policy will not undermine the economic recovery, and that Czech household consumption will drive GDP rebound.
  • Rusnok added that the CNB is ready to hike interest rates at each of the remaining three meetings in 2021, which would raise the policy rate to 1.5%.
  • Rusnok also commented that inflation is currently affected by temporary external factors.
  • USDCZK has been consolidating lower since the start of the conference (2.45pm London time), currently trading slightly below the 21.47 level.


Link to the statement:


https://www.cnb.cz/en/monetary-policy/bank-board-d...


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