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

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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This non-exhaustive information is based on short-term forecasts for expected developments on the financial markets. KBC Bank cannot guarantee that these forecasts will materialize and cannot be held liable in any way for direct or consequential loss arising from any use of this document or its content. The document is not intended as personalized investment advice and does not constitute a recommendation to buy, sell or hold investments described herein. Although information has been obtained from and is based upon sources KBC believes to be reliable, KBC does not guarantee the accuracy of this information, which may be incomplete or condensed. All opinions and estimates constitute a KBC judgment as of the data of the report and are subject to change without notice.

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