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:
- Raises rates by 50bps to 5.00% - the tightest policy rate in over two decades
- Rusnok's press conference suggests more will be done on rates if required
- Sell-side bump peak rate projections higher - consensus now for 5.50-6.00%
The CNB raised rates by a further 50bps to 5.00% on Thursday, alongside market and analyst expectations. This brings interest rate policy to its highest level in over two decades – matching the CPI rate which has hit levels not seen since 1998. The board were split by 5-2 at this meeting, with two members of the board opting for unchanged rates in March.
Across the first quarter of 2022, markets and analysts had seen 5.00% as a possible near-term peak or terminal rate for Czech policy, but Rusnok stressed in the post-meeting press conference that the bank has more room to use rates to tame inflation, and that a 75bps rate rise was considered at this meeting. As such, the board made it clear that restoring price stability is the “absolute priority” and that inflation will remain “very high” across this calendar year
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.