Czech National Bank raises main interest rate to 5.75 percent, highest level since 1999

The Bank Board of the Czech National Bank raised its basic interest rate by 0.75 percentage point to 5.75 percent, the highest level since 1999, the central bank’s spokeswoman told the Czech News Agency on Thursday. It is the sixth above-standard increase in the base rate of more than 0.25 percentage point in a row.

The increase is mainly due to the continuing rise in inflation, which has been exacerbated by the war in Ukraine, and the central bank's efforts to dampen inflation expectations.

The bank has also decided to increase the Lombard rate, which deals with short-term liquidity loans to commercial banks and the discount rate, by 0.75 percent to 6.75 percent.