Latest comment from financial markets

Ad-hoc reports: Rates unchanged again, no rate cut on the table yet

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.

Autor: Jaromír Gec Show more

Latest comment from the equity market

Comment on financial results: PMCR: Results in line with expectations, dividend CZK1,310

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.

Autor: Bohumil Trampota Show more