Czech central bank (CNB) raises key interest rate

A spokeswoman for the Czech central bank has revealed the bank raised its key interest rate by a quarter of a point to 3.0 percent on Thursday in order to contain inflation risks at a time of robust growth. At mortgage bank Hypotecni Banka, managing director Jan Sadil told the AFP news agency the increase was "in line with what financial markets expected". Banking circles have said a further increase by the end of the year could not be ruled out. According top Ales Michl, of Raiffeisenbank, the bank reacted to three factors this year: household consumption, which has been the strongest in the last three years, as well a hike in salaries, the sharpest in the last five years, and the weakness of the Czech crown against the euro.