Czech central bank hikes rates

The Czech National Bank (CNB) hiked its key interest rate for the sixth time in 12-months earlier this morning.

The CNB increased its two-week repo rate to +1.5% from +1.25%, and its Lombard rate to +2.5% from +2.25%.

The vote was 6-1 to raise rates – one voted to keep policy steady.

In the following press conference, Governor Jiří Rusnok stated that the CNB has “no commitment to raise rates again this year; however it cannot be ruled out.”

He indicated that monthly indicators point to “solid economic growth in Q3.

Expect new forecast will be key for the next CNB rate decision.

CZK has come under pressure, falling -0.56% outright to $21.8592 and against the EUR, down -0.25% to €25.6593.

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Dean Popplewell

Dean Popplewell

Vice-President of Market Analysis at MarketPulse
Dean Popplewell has nearly two decades of experience trading currencies and fixed income instruments. He has a deep understanding of market fundamentals and the impact of global events on capital markets. He is respected among professional traders for his skilled analysis and career history as global head of trading for firms such as Scotia Capital and BMO Nesbitt Burns. Since joining OANDA in 2006, Dean has played an instrumental role in driving awareness of the forex market as an emerging asset class for retail investors, as well as providing expert counsel to a number of internal teams on how to best serve clients and industry stakeholders.
Dean Popplewell