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There Is ‘No Ceiling’ For Czech Rate Hikes (CNB Mora)

CZECHIA
  • Today, trucking companies plan to block roads and some border crossings to protest against high fuel prices.
  • Last week, the CNB raised its benchmark rate by 50bps to 5%, alongside market and analyst expectations, to continue its ‘fight’ against inflation.
  • On Friday, Vice Governor Mora mentioned in an interview that there is ‘no ceiling’ for Czech rate hikes. The board will see how the situation develops in May (new forecasts).
  • With the FRA 3Mx6M currently trading at 67bps above the Pribor 3M, the market is currently pricing in a terminal rate between 5.5% and 5.75%.

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