September 23, 2024 10:30 GMT
MNI CNB Preview - Aug 2024: Sticking With Reduced Pace Of Cuts
The CNB is expected to deliver another 25bp rate cut, bringing the repo rate to 4.25%.
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MNI (LONDON) -
Executive Summary:
- The CNB is widely expected to deliver another 25bp rate cut.
- Economic developments have been slighly dovish vs. latest forecast.
- The decision will be announced on Wednesday rather than Thursday.
Full preview including summary of sell-side views here:
MNI CNB Preview - September 2024.pdf
The Czech National Bank (CNB) is expected to continue with a slower pace of easing, cutting the two-week repo rate by another 25bp and bringing it to 4.25% this week. The economy deviated slightly to the dovish side compared with the CNB’s latest forecast, but the Bank Board’s cautious approach to monetary policy and persistent risks to the inflation outlook will likely prevent a return to “jumbo” cuts. Several Board members recently expressed their support for continued gradual easing, with inflation expected to stay close to the +2% Y/Y target over the medium term.
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