Industrial production (December)
Flash estimate: 2.1% y/y
Consensus: 1.3% y/y
Industrial production positively surprised and emerged from a long streak of negative figures. Rising export sales show that the recovery is led by better economic conditions in the Euro-zone countries.
New orders increased by a 12.5% (export orders by 16.9%) and boost optimism about further improvement in the Czech economy.
There is no need to change an outlook for the monetary policy. The Czech National Bank is likely to adjust its forecasts higher at the next meeting, however, rates should be on hold until the second half of the year due to benign inflation outlook.