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Koruna Slips, Parliament Debates Fiscal Consolidation Measures


EUR/CZK last changes hands +0.030 at 23.858, with bulls seeking gains past Mar 17 high of 24.137. On the flip side, bears see Jun 27 low of 23.573 as their initial target, with Jun 6 low coming up next at 23.510.

  • Czech lawmakers start discussing a legislative package designed to reduce record-breaking budget deficits. The governing coalition is determined to push contentious austerity measures through the legislature, even as the opposition vowed to obstruct the debate to delay the adoption of the package.
  • National Economic Council member Tomas Havranek told CTK news wire that the CNB is unlikely to cut interest rates before 2025. The economist said that the central bank needs to restore its credibility after a period of double-digit inflation, which rules out monetary easing this year and makes it unlikely that the CNB will cut rates next year. Havranek's comments contrast with market bets implying cuts already this year.
  • CZGB yields and the local FRA curve have come under pressure today. Local equity benchmark PX Index has added ~0.2%.

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