Central bank cuts interest rate to new historic low

The Czech National Bank has reduced the country’s base interest rate to the historic low of one percent. Four members of the central bank’s seven-man executive board voted on Wednesday to cut the rate by a quarter point. Vice Governor Miroslav Singer said that the reason for the cut was the persistent decline in market interest rates this year and the bank’s prognosis of gradual growth in 2010. The board last lowered the interest rate at the beginning of August to the then-historic low of 1.25%, at which time all seven members agreed on the cut.