At today’s meeting, the Czech National Bank cut the repo rate by another 50 basis points to 4.75%. However, this was probably the last such significant move in the current cycle. According to the governor, Czech central bankers are likely to decide between a 25bp cut and no change at their next meeting in early August. The perceived upside risks to inflation are leading the board to take a cautious approach to the degree of future monetary easing. In our view, the state of the economy, combined with inflation remaining within the tolerance band of the target, will continue to push rates lower. We therefore expect three 25bp cuts to the repo rate at three of the four remaining meetings of this year. This should bring the rate down to 4% by the end of the year. We maintain our view that the terminal level of the repo rate will be 3.5%, which we expect to be reached in 1Q25.