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Forward Rates Remain Steady Around 5% Despite Large Inflation Print

CZECHIA
  • Czech forward rates are still pricing in a terminal rate at 5% despite the positive surprise in inflation last week.
  • As a reminder, CPI inflation accelerated to 9.9% in January (vs. 9.3% exp.), up from 6.6% the previous month.
  • Last week, the Czech lower house of parliament approved the 2022 budget draft in the first reading, locking-in the deficit ceiling of 280 billion koruna, the ruling coalition parties say in a joint statement (BBG).
  • This week, economic data to watch will be PPI inflation coming out on February 23.

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