EUR/CZK: CNB's May meeting a possible negative event risk for the koruna – ING

The Czech National Bank's (CNB's) May meeting is approaching. Economists at ING see EUR/CZK trading in a 24.30-24.50 range heading into the meeting – which poses downside risks for the koruna.

Further hikes are expected in Czechia

“CNB's blackout period starts next Thursday, so early next week we are likely to see a number of speeches by other board members which should support market expectations of further rate hikes. However, the new CNB forecast will show a sharp rate cut later, in addition to rate hikes now.” 

“We can see EUR/CZK trading in a 24.30-24.50 range heading into the 5 May rate meeting – but see the meeting itself as a possible negative event risk for the koruna.”