Czech Rate-Cut Bets Rise as Growth, Inflation Forecast Reduced

Traders in interest-rate derivatives raised bets that Czech borrowing costs will drop after policy makers cut the country’s economic-growth and inflation forecasts and the European Central Bank reduced its main rate.

Forward-rate agreements fixing three-month interest in nine months dropped six basis points, or 0.06 percentage point, to 1.005 percent by 4 p.m. in Prague. The FRA contract traded 15 basis points lower than the three-month Prague Interbank Offered Rate to which it settles, double the difference a week ago.

To contact the reporter on this story: Krystof Chamonikolas in Prague at

To contact the editor responsible for this story: Gavin Serkin at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.