The Czech National Bank board will meet today (November 30) to discuss monetary policies. Any change to interest rates is highly unlikely. The economy is growing fast but demand inflation pressures are not apparent. On the inflation front, there have been decreases in terms of cheaper prices for fuels, natural gas and clothes. At the same time, monetary conditions are showing signs of tightening as evidenced by the strengthening of the Czech crown. (The CNB board can part company from its two members in a peaceful economic setting.)
We don't expect to see any hike in interest rates until the end of the year, due to the favorable economy developments. Interest rates hikes should continue into next year. According to our estimates rates, we should be about 50bps higher in one year's time.