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 CNB decided to proceed with a 75bps hike at yesterday's meeting (vs. 50bps exp.), levitating the policy rate to a new high of 5.75%.
- This decision was unexpected (base scenarios were expecting 25bps / 50bps hike) following Rusnok comments that future rate hikes will be considered ‘cosmetic fine tuning’.
- According to the CNB statement, there is a possibility to see more rate hikes at the next meetings.
Link to full publication:
The CNB decided to proceed with a 75bps hike at yesterday's meeting (vs. 50bps exp.), levitating the policy rate to a new high of 5.75%. This decision was unexpected (base scenarios were expecting 25bps / 50bps hike) following Rusnok comments that future rate hikes will be considered ‘cosmetic fine tuning’.
According to the CNB statement, there is a possibility to see more rate hikes at the next meetings. There were 5 policymakers (out of 7) that voted for rate hike in yesterday's meeting. As mentioned in the preview, MPC members Dedek and Michl have been the most ‘dovish’ policymakers in the past 6 months and voted for leaving interest rates unchanged at the last few meetings. The central bank raised its average inflation estimate for this year to 13.1% (vs. 8.5%) and to 4.1% for 2023 (vs. 2.3%). In his press conference, Governor Rusnok mentioned that he expects slight contraction in H2.
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.