November saw consumer price index rise by 0.1% and 4.3% month-on-month and year-on-year, respectively. Average annual rate of inflation in November stood at 3.8%. Price change was lower than expected (consensus was at 0.3%, Patria forecast: 0.2%).
The rate of unemployment left unchanged at 8.5% in November as expected. An increase can be assumed in December and following months due to seasonal factors.
The EU countries approved a resolution that indicates that new members could be accepted by the summer 2004.
The Czech koruna reacted at better-than-expected inflation result and strengthened from 34.93 to the euro at the beginning of the Friday’s trading to 34.82. However, a comment of CNB board member, Ludek Niedermayer, sent the koruna back to 34.89 to the euro. He said that interest rate hike isn’t probable in the near future. Against the dollar the koruna left almost unchanged at 39.25 from 39.30 on Thursday.
Bonds rose on Friday. Actually, positive CPI did not much help them, however, at the end of the day the prices jumped up significantly. Some short coverings or rather client purchases might have been the reason. On Monday, PPI figures are to be released, and will affect further bond market's development.
Current benchmark prices: MoF 6.75/05 99.35-65 (+35 bps), MoF 6.30/07 94.65-95 (+50 bps), MoF 6.40/10 92.55-85 (+60 bps).
(David Marek)