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MNI CNB Review: CNB Surprised Market With Aggressive Hike

Executive Summary:

  • The CNB surprised the market yesterday with a 125bps hike (vs. 75bps consensus)
  • CNB forecasts 'sharp' hikes in late 2021 and early 2022
  • However, Rusnok mentioned that it is likely that future hikes will be of smaller magnitude
  • The aggressive tightening cycle has sent the 2Y10Y yield curve to deepest negative territory


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MNI Czech CB Review Nov 4.pdf

Source: Bloomberg/MNI

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