Czech National Bank keeps interest rates unchanged at 7%
At its meeting today, The Czech National Bank Board kept interest rates unchanged, The two-week repo rate (2W repo rate) thus remains at 7%, the discount rate at 6% and the Lombard rate at 8%.
the move marked the first time that the central bank held borrowing costs unchanged since the start of its 675bps gradual tightening path in June of 2021.
The CNB’s Board also decided that the central bank will use its tools to avert the excessive volatility of the koruna, which touched two-year lows in the second week of July.
Annual inflation in the Czech Republic accelerated to a 28-year high of 17.2 percent in June, pressured by surging prices of energy and food, while its Q2 GDP slowed to 0.2% on the quarter, Meanwhile, the central bank also held its discount rate and its Lombard rate steady at 6% and 8%, respectively.
