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Free AccessMonetary policy divergence between CNB and ECB Could Support CZK
- Yesterday, economic data showed that current account deficit came in larger than expected at 16.8bn CZK (vs. 3.7bn exp.), up from revised 12bn CZK the previous month.
- Parliamentary committee debates request to strip outgoing Prime Minister Andrej Babis of immunity from criminal prosecution (BBG).
- The lower chamber of parliament is scheduled to discuss bills proposed by the outgoing government to address surging energy prices (BBG).
- Yesterday, CNB Governor Rusnok mentioned in an interview that he sees terminal rate closer to 4% (than 3%) in 2022, implying that the central bank is far from done in hiking rates.
- Rusnok added that he expects debate on a bigger than 50bps hike at the next meeting on December 22.
- Monetary policy divergence between CNB and ECB could continue to support the CZK (over Euro) in the medium term.
To read the full story
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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.