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Eva Zamrazilova Pushes Back Against Excessive Rate-Cut Bets


CNB Deputy Governor Eva Zamrazilova was yet another policymaker taking the floor today, as she tweeted that she "can't imagine" cutting interest rates before she is confident that inflation is heading towards the +2% Y/Y target in a sustainable manner.

  • Zamrazilova also doubled down on the CNB's pushback against dovish market bets, calling them "excessive" and reminding that "the central bank has warned several times that they will not materialise."
  • She was replying to a post from Czech Bank Association Chief Economist, who wrote that market reaction to Zamrazilova's comments last week (flagging expectations of a weaker CZK and shifting to rate-cut discussion going forward) was unjustified.
  • CBA's Jakub Seidler wrote that Zamrazilova's comments were "nothing new," so "the market is probably reading between the lines what it wants to hear." He added that market pricing of over 100bp worth of rate cuts by the end of 2023 is "extreme."

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