Foreign Exchange & Fixed Income

Czech crown, market rates jump after Reuters exclusive interview reveals central bank signals hawkish turn

Czech crown, market rates jump after Reuters exclusive interview reveals central bank signals hawkish turn

The Czech crown gained 0.6 percent versus the euro and market rates started pricing near certainty of an interest rate tightening next week after Reuters exclusively reported the head of the Czech central bank’s monetary policy department, Tomas Holub, cautioned investors that the bank’s new economic forecast, due out next week, would pen in several more rate increases over the standing outlook, mainly due to a weaker-than-expected exchange rate in the past months and looking forward. The bank’s last forecast from May predicted the crown would keep firming against the euro. But global sentiment has seen it weaken in recent months, despite the rate hike in June.