Czech Koruna: Sideways against Euro as CNB holds rates – Commerzbank
Commerzbank’s Tatha Ghose expects the Czech National Bank (CNB) to keep its policy rate at 3.75%, framing June’s hike as fine-tuning rather than a new cycle. With headline and core inflation still within target, CNB can wait but must avoid sounding dovish.
The Czech National Bank (CNB) is expected to maintain its policy rate at 3.75% for the time being, according to Tatha Ghose of Commerzbank. Ghose considers June's rate increase to be a fine-tuning exercise rather than the start of a new tightening cycle. With headline and core inflation staying within the target range, the bank can wait before making further adjustments, but it must avoid appearing too dovish.
The euro against the Czech koruna (EUR/CZK) is anticipated to remain relatively stable around 24.20 throughout the next month. However, risks related to Iran could trigger additional rate hikes if the situation does not improve.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
