Analysts expect Czech National Bank (ČNB) to increase base rate by 0.50 pp

Published: 29.09.2021 Related countries:  New Zealand New Zealand, Australia Australia

Komerční banka economist Jan Vejmělek expects increase, with the proviso that by the end of 2021, the two-week repo rate could reach 2.00 %.

On September 30, 2021, the Czech National Bank (ČNB) will increase its key rate by 0.50 percentage points to 1.25 %. Komerční banka economist Jan Vejmělek expects this, with the proviso that by the end of 2021, the two-week repo rate could reach 2.00 %. Analyst at Česká spořitelna Jiří Polanský believes that in addition to more than 4% inflation, the current development of the koruna, which remains weak close to the level of CZK 25.40 per euro, may also have an effect of increasing by 50 basis points. Raiffeisenbank analyst David Vagenknecht stated that there is a risk of rising inflation expectations, which the ČNB will want to avoid and will send a clear  hawkish signal to the financial market and the public.

Source: Daily news | ČIA news
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