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MNI CNB Preview - December 2021: CNB To Hike Policy Rate Back To Sep 2008 Levels

Czech National Bank
Czech National Bank

Executive Summary:

  • CNB is likely to hike by 75bps on Wednesday (Dec 22)
  • Inflationary pressures are now expected to remain elevated longer than previously estimated
  • Central bank is likely to continue its tightening cycle through 2022

Link to full preview:

CNB Preview Dec 22.pdf


The Czech National Bank is likely to raise its benchmark rate by 75bps to 3.5% at its next meeting on December 22 to curb the inflationary pressures, which are expected to remain elevated longer than what policymakers previously estimated. Even though the uncertainty over the economic recovery remains elevated, we saw that a rising number of CNB members have mentioned that a bigger rate hike may be necessary to combat inflation.



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