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MNI CNB Review - February 2023: Higher For Longer

The CNB left interest rates and the existing FX regime unchanged while signalling that monetary policy settings may remain relatively tight for longer than priced by money markets.

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

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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

Keep reading...Show less