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Hawkish CNB Speak Sets Tone This Week

CZECHIA
  • Czech policymakers stuck with hawkish rhetoric even as CPI inflation slowed to +15.0% Y/Y last month, falling in line with the consensus forecast and printing marginally above the CNB's projection. Both Jan Prochazka and Jan Kubicek flagged risks that could justify renewed policy tightening.
  • Central bank speak facilitated the latest bout of Koruna appreciation, with EUR/CZK yesterday lodging its worst levels since 2008. Note that the CNB sees a strong exchange rate as a key tool of its restrictive monetary policy.
  • There is little in the way of scheduled risk events in Czechia today.

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