In line with forecasts, the Czech National Bank left its arsenal of interest rate moves out-of-action and indicated interest rates shouldn't be expected to change in the near future. This goes along with our recent comments on rates, which went against the general view of the market, which had generally counted on an interest rate move in April. Evidently this is not now going to be happening.
Our model shows the possibility of an interest rate hike in the second half of the year. In a year, the two week repo rate should be higher by more than 50 basic points.