Czech central bank cuts key interest rate by further 0.75 pp to 1 percent

The Czech National Bank cut the main interest rate by 0.75 percentage points on Thursday to 1 percent, following a surprise having cut of 0.5pp on March 16.

A wide majority of analysts polled by Reuters had expected that Czech policymakers would cut rates by only 0.5 pp.

The aim is to mitigate the negative impact of the coronavirus pandemic for Czech companies and households.

After the rate cut the crown extended losses while the finance ministry sold huge amounts in debt tenders for a second day as it ramps up borrowing.

Author: Brian Kenety