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FRAs Now Pricing In Terminal Rate at 5.5%

CZECHIA
  • Yesterday, CNB Deputy Governor Mora said in an interview that Czech rates may peak 'well above 5%'.
  • Mora added that he favours hiking more than 25bps on March 31.
  • FRAs have been surging following the comments, with the FRA 3Mx6M currently trading nearly 100bps above the Pribor 3M, now pricing in a terminal rate at 5.5%.
  • This morning, economic data shows that Czech March consumer confidence fell to its lowest level since January 2013.

Source: Bloomberg/MNI

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