Czech National Bank cuts key interest rate for the second time to 6.25%, aiming to support struggling economy; inflation decreases to 10.7%.

The Czech National Bank has reduced its key interest rate for the second consecutive time, bringing it down to 6.25% in an effort to support the struggling economy. This follows a half-percentage point cut on December 21, the first cut since June 2022. Despite the rate cuts, the Czech economy contracted by 0.2% in the last three months of 2023 compared to the previous year. Inflation has decreased to 10.7% in 2023 from 15.1% in 2022, but still remains above the bank's 2% target. Other major central banks, like the European Central Bank and the U.S. Federal Reserve, have yet to make decisions to lower their borrowing costs due to concerns about inflation.

February 08, 2024
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