Economic data
Czech National Bank: Neutral new normal – ING
ING economists David Havrlant and Frantisek Taborsky review the Czech National Bank’s 25bp hike to 4%, decided on a narrow 4–3 vote. They highlight stronger inflation and softer growth in the CNB forecast, with 4% seen as a neutral level. The authors expect further hikes to be constrained by weakening economic activity and question the steep rate-cut path embedded in CNB projections.