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CNB Very Likely To Hike By 50bps This Week

CZECHIA
  • The government is scheduled to discuss the state budget draft for 2022 at its weekly meeting (BBG).
  • According to latest polls, Czech Prime Minister Andrej Babis's ANO party's lead narrowed in September ahead of general elections on October 8/9.
  • This week (September 30), CNB is very likely to raise its benchmark rate by 50bps based on recent policymakers 'hawkish' speeches.
  • We saw that a rising number of CNB members have mentioned that a bigger rate hike may be necessary to curb the inflationary pressures.

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