CNB steps up tightening, but NBP opts for a smaller hike

Central banks in Czechia and Poland caught investors by surprise today as the Czech central bank (CNB) unexpectedly re-accelerated the pace of its tightening cycle with a 75bp hike while Poland’s central bank (NBP) slowed the pace of tightening with a smaller-than-expected hike (also of 75bp). With inflation still the main concern we expect interest rates to rise to at least 7.00% in both countries this year. China Drop-In (12^th May, 09:00 BST/16:00 SGT): Join our China and Markets economists for a 20-minute discussion about near to long-term economic challenges, from zero-COVID disruptions to US-China decoupling. Register now.