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CNB Rate Decision Coming Up (13:30GMT/14:30CET)

CZECHIA
  • The Czech National Bank (CNB) holds its first monetary policy meeting of the year, with analysts undecided on whether central bankers will accelerate their rate-cutting cycle. 14/24 economists surveyed by Bloomberg expect a 25bp cut, while the other 10 look for a 50bp move.
  • Data coming out of Czechia’s real economy have been consistently dovish, leaving the country as the only EU economy yet to recover from the pandemic-era contraction in output.
  • On the other hand, the risks from dovish market pricing, CZK depreciation and sticky core inflation may reduce the scope for more aggressive monetary easing.
  • The rate decision will be announced at 13:30GMT/14:30CET, followed by Governor Ales Michl's presser at 14:45GMT/15:45CET. See our preview of the decision, with sell-side analyst views, here.

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