Possible Czech Rate Rise in November Might not Lift Koruna

Dow Jones
Sep 28

1306 GMT - The Czech National Bank is likely to raise interest rates further in November, but this might not be enough to support the Czech koruna, Commerzbank's Tatha Ghose says in a note. One rate hike wouldn't be sufficient to boost the koruna as inflation will likely accelerate faster during this energy-price upswing than the CNB will be willing to raise rates, he says. The real rate adjusted for inflation will, therefore, fall as it did during the post-Covid rise in inflation, he says. The CNB left rates unchanged earlier this month but the minutes of the meeting showed the central bank is becoming more concerned about inflation risks. The euro rises 0.2% to 24.389 koruna.

 

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