Commerzbank economists have scrutinized the performance of the Czech Koruna (CZK) in the Central and Eastern European (CEE) region over the past year, highlighting its notable underperformance. Their analysis specifically focuses on the outlook of the EUR/CZK exchange rate.
Not expecting much rebound
It is likely that the Czech Koruna will stabilize in the upcoming months, given the expectation of a more substantial moderation in inflation compared to the anticipated rate cuts.
However, in the latter part of 2025, our projection anticipates a renewed depreciation of the Czech Koruna. This is attributed to a weakened Euro (EUR) and the persistence of stubborn wage and core inflation, which may experience a resurgence in the medium term.
