Dutch International: Czech Koruna may rise as expectations for interest rate cuts seem to have peaked.

Frantisek Taborsky, an analyst at the Netherlands International Group, stated in a research report that due to the Czech National Bank's interest rate cuts not likely reaching the market's expectations, the Czech koruna is expected to strengthen in the coming months. He mentioned that the market anticipates the central bank to lower its policy rate from 3.5% to 3.0% by the end of the interest rate cut cycle, but this seems excessive. He said, "We believe that, in the basic scenario, we will only see one more rate cut, or there is also a risk of interest rates remaining at their current level." He noted that risks are accumulating towards a more restrictive monetary policy direction from the perspective of inflation and the economy. The euro remained relatively stable against the Czech koruna, trading at 24.9362 Czech koruna.