The Czech Republic raised interest rates again, this time by as much as 100 basis points, while the consensus assumed a move to 3.5% (by 75 bp). We currently have the highest interest rates in the Czech Republic since 2008! This is a completely different situation compared to neighboring Poland. In the chart below, we can see the main rate in the Czech Republic and Poland. This may mean that interest rates in Poland have not yet reached the ceiling, although at the same time it is worth noting that the economies are completely different. Nevertheless, the inflation problem is the same, although in Poland it is much bigger. In Poland, inflation reached 7.8% y / y, while in the Czech Republic it is 6.0% y / y.
Interest rates in the Czech Republic and Poland. Source: Bloomberg
EURCZK cannot break through the support at 25.15. Today's upward move weakened after information about the rate hike. Source: xStation5
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