Czech rate markets climbed up to 5 basis points on the short end. Markets had already expected the bank’s biggest rate hike since 1997, with analysts in a Reuters poll forecasting a 50 basis point increase, above a standard move of a quarter of a percentage point. With inflation soaring in central Europe, even more than in most other European markets due to tighter labour markets, Czech and Hungarian rate setters were the first in the European Union in June to begin hiking rates.
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