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ING on CNB: End of a Hawkish Era

CZECHIA
  • 22 June will be the last meeting of the board in its current hawkish composition.
  • ING expects an interest rate hike of 125bp, and sees risks balanced on both sides.
  • After 1 July, the new board will change communication to rate stability and wait for a signal to cut rates.
  • According to ING, FX interventions will continue regardless of the view of the new board.

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