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Czech Inflation Rises To 4.9% in September

CZECHIA
  • Inflationary pressures continue to rise in the CEE region, with Czech CPI inflation coming in higher than expected in September at 4.9% YoY (vs. 4.6% exp), up from 4.1% the previous month.
  • Hence, odds for another aggressive 75bps hike at the next meeting (Nov 4) are rising.
  • Czech policymakers have made it clear at the last meeting that they are very sensitive to a rise in inflation and will act accordingly if it keeps diverging from the CNB 3-percent upper tolerance band.
  • CZK is appreciating following the release with USDCZK gradually approaching the 21.90 support; next level to watch on the downside stands at 21.85.

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