The decision by the Czech National Bank to deliver another 50bp cut to its policy rate today, to 4.75%, was a dovish surprise to most analysts (although not ourselves). That said, the post-meeting communications struck a cautious tone and suggest that the easing cycle will slow at the next meeting. Accordingly, we have revised our end-year forecast to 3.75% (above our previous forecast of 3.50%, but below the consensus forecast before today of 4.00%).
This publication has been updated with additional analysis since the post-meeting press statement and press conference.
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