Czech Republic: CNB unexpectedly raises interest rates – Danske Bank

The Czech National Bank (CNB) caught markets back raising interest rates by 25 basis points. EUR/CNZ is trading at 25.04 as analysts at Danske Bank see the pair heading lower.

Key quotes

“CNB surprised markets yesterday by raising interest rates by yet another 25bp.”

“We see scope for additional hawkish comments that have yet to be priced.” 

“We could see downside risk to EUR/CZK from spot and our 12M target of 25.00.”