Czech National Bank expected to raise rates this week

Czech National Bank expected to raise rates this week

Published at: 2019-04-30 10:04 | Author: CIJEurope.com
The Czech National Bank is expected to raise the country's base interest rates on Thursday. The move would be the CNB's first rate hike in 2019, which illustrates just how much has changed. This time last year, the bank was setting new, higher rates at nearly each of its monthly meetings. But with inflation now at the top edge of the bank's tolerance level, as is the fact that the Czech koruna is not appreciating in value. Such factors are expected to outweigh the primary counter-arguments, such as slowing consumption levels and an easing of wage inflation. There are larger concerns as well, according to Roklen24 analyst Jan Berka who includes a slowing European (especially German) economy, the threat of Brexit and strengthening protectionism. He notes that 15 of 18 Bloomberg analysts polled anticipate a 25 bps rate hike and that he agrees with the prognosis.

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