July 31, 2021

CEE MARKETS-Czech crown firms on expectations of August rate hike

BUCHAREST, July 13 (Reuters) – The Czech crown touched a one-week high on Tuesday as inflation exceeded market expectations and reinforced views of another interest rate hike in August, while other central and eastern European currencies were mixed. Czech headline inflation eased less than expected in June to a rate of 2.8% year-on-year, sticking near the top end of the central bank’s target range. “The Czech National Bank has open space for another rate rise already at its August meeting after today’s data,” UniCredit economist Patrik Rozumbersky said. In June, the Czech and Hungarian central banks became the European Union’s first policymakers to tighten interest rates since the pandemic hit, faced with strong inflationary pressures. By 0850 GMT, the Czech crown was up 0.3% against the euro on the day at 25.6140. Elsewhere in the region, the Romanian leu was flat against the euro…

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