Czech central bank raises key interest rates

As expected, the Czech National Bank has raised key interest rates, by 0.25 percentage points to 0.5 percent. Analysts say the main reason is fears of rising inflation related to the ongoing economic recovery, and the market expects two more rate increases this year.

Four of the central bank’s board voted in favour of the decision, one of whom wanted to raise the key interest rate by as much as 0.5 percentage points. Two members voted to leave interest rates unchanged, central bank governor Jiří Rusnok told a press conference.