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CNB: hawks rear their heads, but Q3 rate cut in play

The Czech central bank (CNB) left its main policy rate on hold at 7.00% as expected today, but it looks like policymakers set out to strengthen their hawkish rhetoric and downplay expectations of an imminent cut in interest rates. The message was loud and clear. We still think the factors will be in play for an interest rate cut in September, but the risks are clearly skewed to higher for longer rates.

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