Central bank increases interest rates

At its meeting on Thursday, the Czech National Bank Board increased the two-week repo rate by 25 basis points to 1.25%. At the same time, it increased the Lombard rate by 25 basis points to 2.25% and the discount rate by 20 basis points to 0.25%.

The new interest rate levels come into effect on 3 August 2018.

It is the third hike in interest rates since the end of the bank’s forex interventions against the crown. National Bank Governor Jiří Rusnok has not ruled out further increases this year.