The interest rate decision won’t be so difficult this time. After the Czech Crown's performance on the foreign exchange markets, there really isn’t any question as to whether to hike interest rates now but rather the question of when in the future. The inflation rate has been coming in lower than expected, the economy will most likely slow down in the next few quarters and the crown is likely to see some additional increases to reach a balance. In our model, the interest rates hike shifted from the first to the second quarter. We still expect the CNB’s two-week repo rate at 3.0% by the end of next year.