How Far Will The Tightening Cycle Go?

June 2007 | Economic Analysis

BMI View: Inflation and interest rates are on the rise in the Czech Republic. CPI is back within the central bank's tolerance range, money supply growth remains highly robust, koruna weakness is anticipated and leading CPI indicators are all on the way up. As such, we are currently forecasting three more 25bps rate hikes by the end of 2008. For now, one is pencilled in for 2007, and two over the course of next year. It is possible, though, that the central bank will move to front load tightening in order to rein in price

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