Central European Currencies Mixed Amid Rate Cut Speculation

The Hungarian forint weakened 0.3% against the euro due to technical factors.
The Czech crown strengthened as the central bank governor said rates would not be cut this month.
The Polish zloty held steady but could weaken if more rate cuts come.
Upcoming economic data in Poland is expected to show no clear rebound in Q3.
Analysts expect the Czech central bank to start cutting rates next year despite hawkish tone.

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Relevant topic timeline:

8/19/2023

Czech inflation slowed down in July, but remains fourth-highest in EU

### Summary The Czech Republic's inflation rate dropped to 10.2% in July, although it still ranks fourth among EU nations with the highest inflation rates. ### Facts - 💰 The Czech Republic's inflation rate dropped to 10.2% in July, but it remains one of the EU nations with the highest inflation rates. - 🇪🇺 The European Union as a whole saw a moderate drop in year-on-year inflation rate from 6.4% to 6.1% in July. - 💹 The eurozone's inflation declined slightly from 5.5% to 5.3% in July. - 📉 Inflation rates in the EU spiked last summer due to a surge in energy prices, reaching 9.8% for the EU and just under 9% for the eurozone. - 📊 Among EU nations, Belgium had the lowest year-on-year inflation rate at 1.7%, while Hungary had the highest at 17.5%. - 🌡️ In a month-on-month comparison, consumer prices in the EU remained stagnant in July, with a marginal 0.1% decline in the eurozone. - 💶 The European Central Bank continues to face the challenge of persistently high inflation and has implemented nine consecutive interest rate hikes since July 2020. - ⚖️ The Czech Republic has also maintained a similar strategy, keeping its base interest rate at 7% in an attempt to curb inflation and attract foreign investors.

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10/13/2023

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Posted 9/18/2023, 10:05:00 AM