Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
Executive Summary:
- The Czech National Bank is expected to raise its benchmark rate by another 0.25% to 0.75%
- The majority of the MPC board aims to continue to tighten monetary policy in order to curb inflationary pressures
- The start of a tightening cycle should limit the risk of economy overheating in the medium term
- CZK has remained strong against major crosses as traders keep chasing the koruna amid monetary policy divergence
Link to CNB Preview:
MNI Czech CB Preview August 2021.pdf
The Czech National Bank is expected to raise its benchmark rate by another 0.25% to 0.75% at its next meeting on August 5. Even though the uncertainty over the economic recovery remains elevated, the majority of the MPC board aims to continue to tighten monetary policy in order to curb inflationary pressures, which are expected to remain elevated in H2 2021.
Based on the recent speeches and comments from CNB policymakers, five of the seven MPC members are likely to vote for a hike on August 5 (Governor Rusnok, Mora, Nidetzký, Benda, Holub), while policymakers Michl and Dedek aim to keep interest rates steady in order to stimulate the economic activity.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.