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Koruna Lags CE3 Peers, Budget Committee Approves Amended Austerity Package

CZK

EUR/CZK trades slightly higher, despite broad-based weakness in the greenback. The rate last operates +0.016 at 24.096, with the koruna lagging both its CE3 peers. CZGB yield have moved into negative territory.

  • CNB Deputy Governor Eva Zamrazilova noted that the Bank Board will need to be very cautious about lowering interest rates, as the balance of risks remains skewed in the pro-inflationary direction.
  • Parliament's budget committee approved the government's fiscal consolidation package with the amendments proposed by the ruling coalition, which are supposed to be neutral for the overall fiscal result.

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