RBA Raises Interest Rates to 4.35% Amid Rising Inflation Risks and Middle East Tensions 
Bank of Japan's Ueda Flags Low Real Interest Rates as Key Factor in Rate Hike Timing 
Gold Prices Fall Amid Rate Jitters; Copper Steady as China Stimulus Eyed 
Kevin Warsh Advances Toward Fed Chair Role Amid Political Tensions 
BOJ Rate Decision in Focus as Yen, Inflation, and Nikkei Hang in Balance 
Paraguay Holds Interest Rate at 5.5% as Inflation Remains Stable Amid Global Uncertainty 
Bank of England Set to Hold Interest Rates as Inflation Risks and Iran War Impact Loom 
DOJ Ends Probe Into Fed Chair Jerome Powell, Boosting Kevin Warsh Confirmation Prospects 
Czech Statistical Office released inflation data on Wednesday which showed that February Czech inflation subsided, both at headline and core levels. Headline CPI was slightly higher at 0.1% m/m vs. 0.6% in January; the print was 0.3pp weaker than the Central Bank's forecast for the month. Core inflation was higher at 1%.
Prices of clothing and footwear grew 2.6 percent in February from a year ago and utility costs went up by 0.8 percent. At the same time, transport costs dropped 2.2 percent. The Czech Central Bank noted that inflation remains below its lower tolerance threshold and that return to target could take longer than earlier imagined.
Imported deflation is again an issue and the Central Bank will probably need to consider further monetary stimulus. Since prominent board members strongly oppose the EUR-CZK floor, there are not many alternatives to negative interest rates.
"We forecast only 0.5% average inflation this year compared with consensus forecasts in the 1% range," said Commerzbank in a report.
