Key events in EMEA and Latam next week
In EMEA and Latam next week, our main focus is on whether the Czech central bank will hike for the fourth consecutive time at its meeting next Thursday
Czech National Bank still in hiking mode
Though CPI slowed down to 2.3% in September, due to falling prices for package holidays and newly-introduced bus and rail fare discounts for pensioners and students, this is no game changer for the central bank of Czech Republic.
Economic activity remains solid, and inflationary pressures are gradually mounting across the monetary policy horizon, due to an overheated labour market and accelerating wages. And importantly, the koruna remains relatively weak, which therefore isn't delivering the tightening of monetary conditions the central bank had assumed for the 4Q18 (EUR/CZK at 25.25).
This altogether means that the CNB should deliver its fourth consecutive hike next Thursday.
EMEA and Latam Economic Calendar
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