Czech National Bank raises key interest rates by 0.75pp
The Czech National Bank’s board significantly raised its main interest rates on Thursday. The key interest rate, on which commercial loan rates is derived, rose by 0.75 percentage points to 1.5 percent, which is the biggest hike since 1997. Economists had expected the rate to rise by 0.5 percentage points.
The two-week repo rate stands at 1.50 percent after the hike, the highest level since March 2020 when the central bank slashed its rates to support an economy hit by the first wave of the COVID-19 pandemic. The crown jumped by 0.5 percent after the announcement.