Czech National Bank again raises key interest rates by 0.25pp

As expected, the Czech National Bank on Thursday raised key interest rates for a second time this year, by 0.25 percentage points to 0.75 percent.

Economists say the main reason for the rate increase is the fear of rising inflation related to the economic recovery following the full year of the coronavirus pandemic.

At its last monetary meeting on 23 June, the central bank raised interest rates for the first time since February 2020, also by 0.25 percentage points. Before the pandemic hit last February, the base rate was 2.25 percent.