Czech National Bank raises key interest rates by 1.25pp, biggest hike in 24 years

The Czech National Bank raised key interest rates by 1.25 percentage points to 2.75 percent on Thursday, the biggest hike in 24 years. It was the fourth consecutive rate hike by the central bank board in 2021.

Analysts had expected a rate hike due to fears of rising inflation related to the ongoing economic recovery, but the market consensus was that it would not exceed a full percentage point.

Inflation jumped to 4.9 percent in September, well above the central bank’s 2 percent target.