In Brief: Czech National Bank Increases Interest Rate To 1.5%
The board of the Czech National Bank (CNB) has raised the interest rate for the third time this year. Today, it has announced a raise by 0.75 percentage points to 1.5%. Title photo: ZM / Brno Daily.
Czech Rep., Sep 30, (BD) – “At its meeting today, the CNB Bank Board increased the two-week repo rate (2W repo rate) by 75 basis points to 1.50%. At the same time, it increased the Lombard rate to 2.50% and the discount rate to 0.50%,” the board announced this afternoon.
The main reason for such a steep rise in interest rates is the growing inflation level, which has exceeded the CNB’s expectations. Over the three-year horizon, inflation expectations remain anchored just above the CNB’s 2% target.