At its 28 June meeting, the Czech National Bank cut the two-week repurchase rate by 25 basis points to 0.50%, in a move expected by the market. With this move, monetary authorities have cut the main monetary policy rate to a new record low, after officials last slashed the main monetary policy rate from 1.00% to 0.75% in May 2010. At the current level, the two-week repurchase rate is now 25 basis points below the European Central Bank's main policy rate. In addition, the Lombard rate, which is a ceiling for short-term interest rates, was also cut by 25 basis points to 1.50%. Finally, the Bank left the discount rate unchanged at 0.25%. In its statement, the Central Bank argued that, under its baseline scenario, inflation will remain elevated as a result of the January VAT increase, but will be back below the Bank's 2.0% inflation target next year. However, monetary authorities acknowledged that the alternative scenario
Czech Republic Monetary Policy
Central Bank cuts interest rates to new record low
June 28, 2012
Looking for forecasts related to Monetary Policy in Czech Republic? Download a sample report now.
Note: 2-week repo rate in %.
Source: Czech National Bank (CNB).
Czech Republic Economic News
October 10, 2016
In September, consumer prices fell 0.2% from the previous month, matching August’s reading.
October 7, 2016
Industrial production grew 13.1% year-on-year in August, which sharply contrasted the 14.1% fall registered in July and was the best result since May 2011.
October 3, 2016
The manufacturing Purchasing Managers’ Index (PMI) produced by IHS Markit rose from August’s 50.1 to a four-month high of 52.0 in September.
September 29, 2016
At its meeting on 29 September, the Czech National Bank (CNB) decided to leave the two-week repo rate unchanged at its so-called “technical zero” of 0.05%.
September 26, 2016
The economic sentiment indicator published by the Czech Statistics Office (CSO) rose from August’s 96.8 points to 97.1 points in September, marking a seven-month high.