May 27, 2022 07:32 GMT
- Incoming Governor Michl reiterated this week that he will propose rate stability after taking over in July as current rates are sufficient to tame demand risks.
- Two-thirds of Czech inflation are cost-driven, imported, according to Michl.
- Michl also said that CZK was impacted by speculative flows following his appointment, and favors strong CZK based on LT capital inflows.
- Michl added that he plans to increase the return on FX reserves by raising the level of stocks and gold.
- CNB Benda said this week that it was too early till to predict the outcome of the June rate meeting.
- STIR market still prices in a terminal rate at around 6.75% (vs. 5.75% current) with the FRA 6Mx9M currently trading at 6.74%.