Free Trial
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Executive Summary:
- The Czech National Bank left interest rates and the FX stability commitment unchanged, in line with expectations
- The central bank’s communications suggested that the exchange-rate channel is still seen as a key bulwark against inflation
- Governor Ales Michl explicitly pushed back against market pricing and suggested that interest rates may need to remain higher for longer
Click here to see the full review:
MNI CNB Review - February 2023.pdf
The Czech National Bank voted 5-2 to leave the 2-week repo rate unchanged at 7.00% and maintain the existing FX regime, in line with the consensus call. The two dissenters (presumably Mora and Holub, based on past decisions) were seeking a 50bp rate hike. While the “dovish” majority outvoted them yet again, Governor Michl suggested that monetary policy settings may have to remain relatively tight for an extended period of time, with the CNB determined to get on top of inflation.
Fig. 1: Comparison of CNB Forecasts - Autumn 2022 versus Winter 2023
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok