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CNB Sees Gradual Decline in ST Rates From H2 2022

CZECHIA
  • According to the CNB statement, 5 policymakers (out of 7) voted for rate hike in today's meeting.
  • The CNB lifted its 2022 inflation forecast to 8.5% vs. 5.6% previously.
  • The CNB sees gradual decline in policy rate from H2 2022 as inflationary pressures start to ease.
  • The CNB also sees 2022 3M Pribor at 4.3% vs. 3.3% previously.
  • The central bank cut 2022 GDP growth forecast to 3% from 3.5%; sees 2023 growth at 3.4%.
  • Governor Rusnok mentioned during the press conference that large hikes may not be needed in the future.
  • Rusnok reiterated that uncertainty remains elevated, but rates could still rise more.


See link to CNB statement:

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

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