- Analytics
- News and Tools
- Market News
- Further cautiousness likely from the CNB – Commerzbank
Further cautiousness likely from the CNB – Commerzbank
FX Analyst at Commerzbank Antje Praefcke comments on the upcoming CNB meeting early next month.
Key Takeaways
CZK eased as a result of the publication of the September inflation data, as it fell much more significantly than expected from 8.5% to 6.9% yoy. From the market’s point of view that gives the Czech central bank (CNB) more scope to cut interest rates earlier than expected after all.
Let’s wait and see how the board members will position themselves at the next rate meeting in early November. No doubt they will continue to act cautiously as the fall in inflation in September was mainly due to regulated prices (energy) and the fight against price risks is not yet over. After all oil prices are rising again and the labour market remains tight. As a result, it is therefore very questionable in my view whether the willingness to cut interest rates will rise. Therefore, if the market has to correct its expectations again CZK will likely be able to correct its losses.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
