Czech central bank refrains from hike but easing still far off

The Czech National Bank (CNB) left interest rates unchanged as expected on Wednesday, reinforcing a market view that rates have peaked and the next move will be downward sometime around the end of this year as inflation eases.

The decision leaves the main repo rate at 7.00%, where it has stood for a year, as the bank under new Governor Ales Michl ended a string of hikes and instead stepped into the currency market on several occasions to prop up the exchange rate to tighten monetary conditions.