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Presidential Campaign Draws To End, CNB Hawk Holub Reiterates Rate-Hike Call

CZECHIA
  • It is the last moment for undecided Czech voters to make up their minds ahead of the presidential run-off, with polling stations set to open tomorrow at 14:00CET/13:00GMT. Retired general Petr Pavel and business tycoon Andrej Babis are preparing to face off in their last debate tonight. We will not get any further opinion polls, but recent surveys suggested that Pavel remains well ahead of his rival. His victory is almost fully priced in by betting markets, with the Mandaty.cz model last estimating the odds of Pavel becoming the next Czech President at 91%.
  • CNB Bank Board member Tomas Holub reiterated his call for higher interest rates and warned that he would be willing to sacrifice some economic growth this year to avoid inflation becoming persistently elevated. Holub's hawkish leanings are well documented but most of Bank Board members still prefer the stabilisation of interest rates at their current levels.
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