CNB brings its tightening cycle to an end

The Czech National Bank became the first major EM central bank to end its tightening cycle after it left its policy rate on hold at 7.00% today. The communications were not as dovish as we had expected, but the new-look MPC is clearly less inclined to tackle inflation with further interest rates hikes than the last and we think it will also be one of the first central banks to cut rates next year. Emerging Europe Drop-In (11^th Aug): We’re expecting downturns in Central and Eastern Europe, but how bad could it get? Join this 20-minute briefing on our Q3 Outlook report, including the latest on Turkey, Russia and whether Hungary’s forint has further to fall. Register now.