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Zamrazilova Says Rates Might Not Fall This Year After Flagging Potential For September Cut

CZECHIA
  • In the absence of major scheduled risk events in Czechia, market participants will keep digesting yesterday's deluge of CNB comments. Most notably, Deputy Governor Eva Zamrazilova said that the central bank could cut interest rates as soon as in September if data warrants such a move, which applied downward pressure to local FRA contracts, even as she also warned against premature policy loosening. Zamrazilova subsequently tweeted that the CNB's current options are holding rates steady or raising them, as inflationary risks "are significantly prevailing" over potential anti-inflationary factors, while "it's possible that a decline in interest rates might not happen at all this year."
  • Czechia's Cabinet will hold a meeting at 09:00BST/10:00CEST, with a media briefing due at 12:00BST/13:00CEST.

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