The Czech National Bank is expected to leave interest rates unchanged at today’s meeting. Market expectations of a rate hike have calmed down in recent weeks. Some CNB board members have even hinted at the possibility of cutting rates. A main topic is likely to be the recent strength of the Czech currency (CZK). Real effective exchange rate is approx. 4 % above equilibrium level, according to our estimates. Thus, we expect flat interest rates and a comment on exchange rate after the CNB board meeting.