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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.
CZECHIA
- As inflationary pressures are expected to remain elevated longer than previously anticipated due to the surge in energy prices, EM central banks are very likely to prolong their tightening cycle and therefore raising the terminal rate (CEE, Latam).
- Following Glapinski comments this week that NBP policy rate could be raised up to 4% if growth remains strong, CNB member Benda mentioned today that the Czech policy rate will probability be increased up to near 5% through the first half of 2022.
- It is clear that policymakers are expected to continue their fight against inflation in the coming months.
- CNB already hiked its benchmark rate by 350bps in the past 8 months; therefore, the rise in policy divergence between CNB and ECB could continue to support CZK in the near term.
- EURCZK broke below its ST support in today’s trading session and is gradually approaching its key level at 24.28 (Sep 2012 lows).
Source: Bloomberg/MNI
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.
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