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Russia/Ukraine Tensions Create Upside Risk To Czech Inflation (CNB Rusnok)

CZECHIA
  • CNB Governor Rusnok mentioned on public radio this morning that Russia-Ukraine tensions creates an upside risk to Czech inflation.
  • As CEE currencies remain vulnerable to geopolitical uncertainty, a weakening CZK keeps supporting inflation expectations and therefore could lead to a slower deceleration in inflation from H2 2022.
  • Rusnok also reiterated that inflation may ease at slower pace than previously anticipated.

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