Kubicek Sees No Need To Hike Rates, Says Cuts Could Start In 4Q2023 Or In 2024

Reuters runs comments from Bank Board's Jan Kubicek who says that he sees no need to raise interest rates further, as inflation is easing as expected, the risk of a wage-price spiral has not materialised so far, while the government's fiscal plan is anti-inflationary.

• Kubicek says that rate cuts could start in 4Q2023 or in 2024, which falls in line with his predictions from a recent interview with E15. Kubicek outline a similar timeline when he spoke with the newspaper some three weeks ago.
• The official said that the koruna trades near its fundamental values. Notes that the CNB seems to be relatively satisfied with the recent levels of the exchange rate, refraining from FX interventions over the past half a year or so.
• At the CNB's monetary policy meeting held on May 3, Jan Kubicek was part of a majority of four policymakers which voted to keep interest rates steady. Three dissenters cast their votes for a 25bp hike but a 50bp move was also discussed.