Given the latest hawkish statements from the CNB board, we have changed our call for the central bank’s June meeting from rate stability to a 25bp hike. This would take the key repo rate to 3.75%. However, the board’s statements indicate that the June hike would not necessarily mark the start of a new tightening cycle. We therefore expect the June hike to be a precautionary measure, putting the central bank in a stronger position amid rising inflationary risks. Following the June hike, we expect the repo rate to remain at 3.75% for the rest of this year and throughout next year. This is due to the robust economy and fiscal policy, which is likely to be more expansionary in 2027 than we previously thought. If energy and other raw material prices remain persistently high, however, we think that one hike will be insufficient and more will have to follow.