Free Trial

CNB Voted 7-0 in Favour of 50bp Rate Cut

CZECHIA

Highlights from the CNB's policy statement (via Reuters News):

  • Board voted 7-0 to lower interest rates by 50 points on Thursday
  • Board sees risks to new forecast as modestly inflationary
  • Consistent with new forecast is further decline in market interest rates
  • Board considers it highly likely that natural interest rate has grown since pre-covid period, while forecast baseline still sees it at 3%
  • Board sees inflationary risks from slower decline in inflation expectations, services inflation inertia, halt in tradeables disinflation
  • Inflationary risks from exchange rate, potential acceleration in money supply from real estate lending
  • Anti-inflationary risk from stronger global downturn and weaker German output
Updated macro forecasts as follows (via BBG):
  • Czech central bank cuts 2024 CPI forecast to 2.3% from 2.6%
  • Czech central bank lifts 2024 GDP outlook to +1.4% from +0.6%
  • Czech central bank raises 2024 PRIBOR forecast to 5% from 4%

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.