Dawn: CNB raises rates aggressively, koruna strengthens and debate over sale of FX reserve income begins

The Czech National Bank surprisingly raised rates by 75 bps to 1.50%, in response to the accumulation of inflation risks in recent weeks. According to Governor Rusnok, the majority of the Bank Board perceives the risks (given the August forecast) as significantly pro-inflationary, and has therefore resorted to a faster rise in interest rates than … Read more