The Czech koruna 50 years after the beginning of the post-Bretton Woods system and the Czech National Bank 100 years after the establishment of the National Bank of Czechoslovakia
Opening remarks by Mr Jan Frait, Deputy Governor of the Czech National Bank, at the “New challenges in central banking” conference marking the 100th anniversary of the Czech National Bank, Prague, 6 October 2026.
Standard Chartered expects the Czech National Bank (CNB) to make two additional 25 basis points hikes in November 2026 and Q1-2027, bringing the total cumulative tightening to 75 basis points and the policy rate to 4.25% by the end of Q1-2027. This follows a pre-emptive 25 basis points hike in June, which was not anticipated. The bank has raised its 2027 CPI inflation forecast to 2.6% from 2.0%, due to ongoing Middle East risks.
Markets currently anticipate more than 100 basis points of tightening over the next year, but the CNB may be willing to allow some of this hawkish market pricing to continue. Domestic core inflation has remained high at around 3% this year, the upper bound of the central bank's target range. Externally, the Middle East conflict will play a crucial role in the outlook, particularly its impact on energy prices.
The rate paths of major central banks, such as a more hawkish Federal Reserve and European Central Bank, could increase the likelihood of further CNB tightening beyond November, while a dovish shift could lead to a hold after the November hike.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
