3/29/2023 7:35 PM
The CNB left interest rates unchanged at today's meeting.
According to Governor A. Michl, rates will either remain unchanged or rise at
the next meeting in May. However, the latest hawk has already voted for a hike
of "only" 25bp this time, while only last time the hawkish minority
suggested a hike of 50bp. Our forecast is that the repo rate will remain at the
current level of 7% until at least August and then fall to 5% by the end of the
year. However, we see risks of both rates remaining at current levels for
longer and then falling more gradually. The tone of today's press conference
also implied this direction, with the governor again pushing back against
market bets for repo rate cuts of around 100 bp by the end of the year. He also
stated that the koruna could be stronger. The central bank's commitment to
prevent "excessive" fluctuations of the koruna also remained in
place.
3/28/2023 10:28 AM
Philip Morris CR (PMCR) today announced its financial results for the second half of last year and for the full year. Full-year revenues increased +11.0% to CZK21bn. Sales of smoke-free products and favourable price developments had a positive impact. Net profit increased +3.4%, to CZK3.6bn, due to the improved financial result. PMCR management proposes a dividend of CZK1,310 (gross yield of +7.4%). The reported figures are in line with our estimates.