At yesterday's meeting, the CNB's Bank Board decided to keep interest rates unchanged (key rate at 4%) for the first time since the monetary policy easing cycle began last December. |
Year-on-year inflation remained within the CNB's tolerance band even in November. Our and market estimates anticipated an increase to 3% with a potential risk of rising above this level. However, November inflation ultimately remained at 2.8%, the same as in October. |
As expected, annual consumer price inflation jumped higher again. In October, it increased from 2.6% to 2.8%, which was in line with the median market estimate. Our forecast expected a slightly more modest increase (2.7%). |
At Thursday's meeting, the CNB Bank Board confirmed market expectations by cutting interest rates by 25bp, which was also in line with our own forecasts. |
Annual inflation rose to 2.6% in September from 2.2% recorded during the summer holiday season. An increase was widely expected, but the result was higher than both our and the market forecast (2.4%). |