Czech National Bank keeps base rate unchanged at 3.5 percent

As expected, the Czech National Bank (ČNB) has left its key interest rate unchanged at 3.5 percent, where it has stood since early May. The decision, announced by ČNB spokesperson Jakub Holas, aligns with market expectations. Governor Aleš Michl will explain the move and present a new macroeconomic forecast at a press conference this afternoon. The bank also maintained the lombard rate at 4.5 percent and the discount rate at 2.5 percent. After holding the base rate at 7 percent during the inflation wave, the central bank began cutting rates in December 2023, most recently lowering them by a quarter point in May.