Czech Stocks Rally to World's Top as Rate Hikes Lift Banks
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As global equity markets brace for the looming end of cheap money, an aggressive campaign of interest-rate increases is well underway in the Czech Republic. And investors in local stocks love it.
The central European country’s PX equity index is one of the best performers in the world this year, returning 42% including dividends. The rally accelerated as Czech policy makers raised borrowing costs by 250 basis points between June and November and signaled that more tightening was needed to fight inflation.