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MNI CNB Review - August 2024: Moving On To Fine-Tuning

Executive Summary:

  • The Board unanimously backed the decision to cut rates by 25bp.
  • New staff forecast showed a higher interest-rate path.
  • Governor Michl said the CNB wouldn’t mind slight CPI target undershoot.

Click here to see the full review:

MNI CNB Review - August 2024.pdf

The Czech National Bank (CNB) reduced the pace of monetary easing to 25bp, in line with analyst consensus and our call, with the decision supported by all seven members of the Bank Board. The decision was underpinned by a new macroeconomic forecast, which included a significant upward revision to the interest-rate path. Accompanying rhetoric was hawkish on balance, with the Board reaffirming its cautious approach, while Governor Michl stated that a modest inflation target undershoot would be “moderately welcome.”

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