WOOD Flash – Czech Republic macro: ending the year with a bang
The Monetary Policy Council (MPC) of the Czech National Bank (CNB) has voted five to two to raise the 2W repo rate by 100bp to 3.75%. The tone of the press conference, held by CNB governor Rusnok, signalled a hawkish stance with a probable 50bp+ move at the February meeting, and the risk remains skewed to the upside. Today’s decision was in line with our expectations but the tone was somewhat more hawkish than we had expected, and the CNB’s projections for the CZK appear too strong, to us. This, in turn, could mean additional upside to the rate path. We expect an expansion of 2% next year, materially below consensus of 4.4%, due to the aggressive front-loading of the monetary tightening cycle.
WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague, our footprint spans the region and touches investors around the globe.
A pioneer in Emerging Europe, WOOD executed many of the first CEE equity trades and landmark investment banking transactions. Our electronic trading platform was the first in the region, and remains the best. We are continually expanding our relevance and reach in these ever-evolving markets.
Our equity market share reflects our stature: 7% in Warsaw, 20% in Bucharest, 16% in Hungary, 40% in Prague and 5% in Vienna. Our distribution is unparalleled, with the largest salesforce in the region, servicing a uniquely diverse investor base.
We couple local expertise with a truly international perspective. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.
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