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Czech Republic Interest Rate

Czech Republic Interest Rate

2-Week Repo Rate in Czech Republic

The 2-Week Repo Rate ended 2022 at 7.00%, up from the 3.75% end-2021 value and significantly higher than the 0.05% rate a decade earlier. For reference, the average 2-Week Repo Rate in Eastern Europe was 8.40% at the end of 2022. For more interest rate information, visit our dedicated page.

Czech Republic Interest Rate Chart

Note: This chart displays Policy Interest Rate (%) for Czech Republic from 2019 to 2018.
Source: Czech National Bank.

Czech Republic Interest Rate Data

2018 2019 2020 2021 2022
2-Week Repo Rate (%, eop) 1.75 2.00 0.25 3.75 7.00
3-Month PRIBOR (%, eop) 2.01 2.18 0.36 4.08 7.26
10-Year Bond Yield (%, eop) 1.85 1.63 1.28 2.73 5.02

Czech National Bank maintains monetary easing pace in May

At its 2 May meeting, the Board of the Czech National Bank (CNB) cut the two-week repo rate to 5.25% from 5.75%, following a similar 50 basis point cut at its previous two meetings in March and February. In addition, the CNB reduced both the Lombard rate and the discount rate by 50 basis points to 6.25% and 4.25%, respectively. All seven board members voted to reduce rates by 50 basis points.

Inflation has returned to the Central Bank’s 2.0% target in recent months, providing the leeway for the Bank to continue loosening its stance. The rate cuts likely also aimed to boost still-subdued economic activity. The reason not to opt for ever larger rate cuts was due to upside inflation risks, including the possibility of a slower decline in inflation expectations and potential disruptions in tradable good prices due to currency fluctuations.

Looking ahead, the Bank said that it “confirms its determination to continue its tight monetary policy in order to stabilize inflation near the 2% target in the long term”. It also reiterated that monetary easing may be halted at any point should inflation, particularly its core component, fail to align with the forecast. Our panelists expect the CNB to cut rates further by year-end due to under-control price pressures.

Commenting on the outlook, analysts at EIU stated: “Although a rebound in consumption demand and economic activity will elevate inflation in mid-2024 to mid-2025, it will probably remain within the CNB's target range (2% ±1 percentage point). As a result, we expect the CNB to continue with its monetary easing schedule at a moderate pace, by 50 to 75 basis points each quarter until mid-2025, when the policy rate will stabilise at about 3%. The CNB will cut interest rates to the neutral level much sooner than central banks in neighbouring countries.”

Consensus Forecasts and Projections for the next ten years

How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Czech interest rate projections for the next ten years from a panel of 24 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Czech interest rate.

Download one of our sample reports to visualize what a Consensus Forecast is and see our Czech interest rate projections.

Want to get access to the full dataset of Czech interest rate forecasts? Send an email to

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