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Czech Republic: The CNB to cut further in 2020 – Standard Chartered

Economists at Standard Chartered Bank expect the Czech Republic’s growth slowdown to accelerate sharply in 2020, resulting in the country’s first annual GDP contraction since 2013. EUR/CZK is sitting at 27.572.

Key quotes

“We forecast growth of -2.2% in 2020 (2.1% previously) and then 1.6% in 2021 (2.2% previously). Our 2022 forecast is unchanged at 2.2%.”

“The Czech National Bank (CNB) cut its repurchase rate by 75bps on 26 March and we see scope for a further 50bps of cuts by the end of 2020 taking the rate down to 0.50%.”

“We see scope for rates to normalise in 2021, and so forecast the repurchase rate rising back to 0.75% by end-2021.”

 

EUR/GBP Price Analysis: Bears targeting mid-0.8700s, 61.8% Fibo./200-DMA confluence support

The EUR/GBP cross met with some fresh supply on Thursday and slipped below the 0.8800 round-figure mark, back closer to three-week lows during the ear
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France 10-y Bond Auction rose from previous -0.32% to 0.04%

France 10-y Bond Auction rose from previous -0.32% to 0.04%
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