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Market Pricing In Terminal Rate Between 5.5% and 5.75%

CZECHIA
  • The lower house of parliament is expected to debate bills introducing tax breaks related to aid to Ukraine (BBG).
  • This morning, economic data showed that Czech retail sales (ex Auto) came in slightly below expectations at 4.6% YoY in February (vs. 5% exp.), down from 8.5% the previous month.
  • Last week, we saw that the CNB raised its benchmark rate by 50bps to 5%, alongside market and analyst expectations, to continue its ‘fight’ against inflation.
  • With the FRA 3Mx6M currently trading at 68bps above the Pribor 3M, the market is currently pricing in a terminal rate between 5.5% and 5.75%.

Source: Bloomberg

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