The BCCh held the policy rate at 5.00% in a unanimous decision today (29/04). This was the third hold in a row after having cut to 5% in December 2024. The hold was very much expected. The central bank in its March IPoM indicated a willingness to push out the normalisation of policy. Since then, inflation has shown marginal improvement but not enough to accelerate the central bank’s timeline. Meanwhile the uncertain external environment has pushed it to be more cautious, favouring holds this meeting and likely the next as they wait for further developments.
For more, including our market takeaways, please see full note.