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CNB Terminal Rate Likely To Reach 5% in H1 2022

CZECHIA
  • The government of Prime Minister Petr Fiala is scheduled to hold its first formal meeting with the representatives of Czech employers and labor unions to discuss pandemic measures and the EU’s decarbonization plans (BBG).
  • Yesterday, economic data showed that Czech PPI inflation decelerated slightly to 13.2% YoY in December (vs. 13.9% exp.), down from 13.5% the previous month.
  • Last week, CNB Governor Rusnok mentioned in an interview with Ekonom that it is 'hard to imagine' Czech rates above 5%.
  • He added that it is difficult to predict how much more the policy rate needs to be raised given the current environment.
  • There are no important economic data to watch for the rest of the week.

Source: Bloomberg/MNI

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