ING: Dovish CNB Guidance Likely to Pressure Czech Koruna

ING strategist Frantisek Taborsky believes that July’s Czech inflation reading of 1.7% year-on-year will have minimal impact on the upcoming Czech National Bank (CNB) meeting. He expects the central bank to keep its key rate unchanged at 3.75%.

The guidance, however, is seen leaning more dovish than earlier statements, potentially weighing on the koruna against the euro. The shift in tone could signal a readiness to ease policy later this year, adding downward pressure on the currency.