We anticipate the recovery in the Czech koruna to extend below the 25.00 handle against the euro over the coming twelve months as the Czech National Bank begins its hiking cycle with inflation above target. We expect the CNB to begin hiking rates in August as opposed to June as fresh economic projections are provided, while we also forecast that two rate hikes from the central bank is the likeliest option this year. This compares with the 3-4 rate hikes signaled in the February Monetary Policy Report.
Read our latest CZK update in full here:
Author: Ima Sammani, FX Market Analyst
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