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CNB Rusnok Sees Growth At Risk

CZECHIA
  • This morning, CNB Governor Rusnok mentioned in an interview that growth begins to be at risk, therefore limiting the room for further monetary tightening.
  • With the FRA 3Mx6M currently trading at 50bps above the Pribor 3M, market is currently pricing in a terminal rate at 5%.
  • Next meeting will be on March 31 and the CNB is likely to proceed with a 50bps hike and then mark a pause in its tightening cycle.
  • The probability of a rate cut in H2 2022 has plunged as inflationary pressures are now likely to remain elevated longer than previously expected.

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