CNB's Michl Says Rates to Stay "Relatively High" For Some Time

CZECHIA: Michl repeats that rates to stay “relatively high”

• CNB governor Michl sees Czech rates staying “relatively high” for some time – a repetition of his prior view – and urged responsible fiscal spending and moderate wage demands to contain the inflation outlook. Muchl made the comments in his weekly column for MF Dnes.
• Lawmakers on Friday successfully passed windfall tax legislation to put a 60% surcharge on the largest energy firms and banks to directly finance energy subsidies for businesses and households. The vote passed as expected, leaving the tax effective for the next three fiscal years.

HUNGARY: EUR/HUF has slipped below the 400 level for the first time since late September, extending the decline off October’s highs to near 8%. Momentum has extended following last week’s price action, as markets look to the progress of anti-graft legislation through constitutional courts as well as the effectiveness of NBH’s emergency rate action in October.