The Czech National Bank (CNB) is set to continue raising interest rates. Therefore, economists at Société Générale expect the koruna to appreciate through the end of the year.
Approaching rate hike is pushing the koruna to stronger levels
“We expect the koruna to strengthen further, but temporary swings to weaker levels remain likely.”
“Dollar appreciation should have a negative impact on EM currencies, including the Czech koruna. However, the CZK should continue to benefit from the CNB's aggressive monetary policy and higher interest rates.”
“By the end of this year, we expect the koruna to appreciate to EUR/CZK 25.10. A slower pace of appreciation should follow next year.”