Standard Chartered expects the Czech National Bank to raise rates by 50bps over the next two cycles, targeting a 4.25% policy rate by Q1 2027 to bolster the Czech koruna.
The Czech koruna is positioned for potential appreciation as Standard Chartered analyst Saabir Salad projects a more hawkish trajectory for the Czech National Bank. By anticipating two additional 25bps rate hikes in November 2026 and Q1-2027, the bank expects the policy rate to reach 4.25%, which typically strengthens the currency by increasing the yield differential.
Standard Chartered expects the policy rate to reach 4.25% by the end of Q1-2027.
The report projects a total of 75bps of cumulative tightening, consisting of three 25bps hikes including the June move.
Standard Chartered analyst Saabir Salad projects the Czech National Bank will implement two additional 25bps interest rate hikes. These moves, scheduled for November 2026 and Q1 2027, would bring the total cumulative tightening to 75bps and elevate the policy rate to 4.25%.
Standard Chartered expects the bank to continue its tightening cycle with two additional 25bps hikes, reaching a terminal rate of 4.25% by Q1 2027.