The Czech unemployment rate at eight-month lows

KBC Market Research Desk KBC Bank

Weekly Highlights:

Hot money inflows intensified as higher Czech inflation brings CNB‘s exit closer
Hungary’s inflation also surprises on the upside, which implies no need for further easing in Hungary
The Czech unemployment rate at eight-month lows

Chart of the Week: Deposits at the CNB

Hot money inflows intensified as higher Czech inflation brings CNB‘s exit closer. The Czech central bank has to intervene heavily to defend the EUR/CZK 27.0 floor, while liquidity in the Czech banking system (sitting in the CNB accounts) has spiked in 2017.

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KBC Market Research Desk

KBC Bank

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