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Key Presidential Debate Eyed, Retail Sales Shrink More Than Forecast

CZECHIA
  • Czech presidential campaign is in full swing. Former Prime Minister Andrej Babis skipped yesterday's debate with Petr Pavel and Danuse Nerudova but is expected to participate in a TV Nova debate tonight (20:00CET/19:00GMT). In the meantime, he told Mlada Fronta Dnes that if elected, he would strongly oppose any tax hikes.
  • Outgoing CNB policymaker Oldrich Dedek said last night that inflation pressures are culminating and CPI growth will slow after the expected acceleration early this year, effectively echoing recent comments from his colleagues. Dedek, an advocate of rate stabilisation, noted that "the inflation data we have received certainly don't speak in favour of the hypothesis of a further increase in interest rates." As a reminder, he will leave the central bank next month.
  • Czechia's retail sales (ex-auto) printed at -8.7% Y/Y in November versus -7.9% expected. The reading for October was revised to -9.9% from -9.4%.
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