Czech central bank cuts its key interest rate to 4.25%
The Czech Republic’s central bank has cut its key interest rate for the seventh time in a row as inflation remains low and amid the economy’s slow recovery
Your support helps us to tell the story
As your White House correspondent, I ask the tough questions and seek the answers that matter.
Your support enables me to be in the room, pressing for transparency and accountability. Without your contributions, we wouldn't have the resources to challenge those in power.
Your donation makes it possible for us to keep doing this important work, keeping you informed every step of the way to the November election
Andrew Feinberg
White House Correspondent
The Czech Republic’s central bank on Wednesday cut its key interest rate for the seventh time in a row as inflation remains low and amid the economy’s slow recovery.
The cut, which had been predicted by analysts, brought the interest rate down by a quarter of a percentage point to 4.25%.
The bank started to trim borrowing costs by a quarter-point on Dec. 21, the first cut since June 22, 2022. Further cuts of half a percentage point each time followed on Feb. 8, March 20, May 2 and June 27.
Another cut by a quarter of a percentage point came on Aug 1.
The size of the Czech economy was up by 0.6% up year-on-year in the second quarter of 2024, and increased by 0.3% compared with the previous three months, according to the Czech Statistics Office.
The bank predicts growth of 1.2% for 2024.
Inflation was at 2.2% year-on-year in August, the same as the previous month, close to the bank’s target of 2.0%.
The European Central Bank cut its key interest rate on Sept. 12 from 3.75% to 3.5% for the second time to prop up tepid growth with lower borrowing costs for companies and home buyers.
The U.S. Federal Reserve cut its benchmark interest rate on Sept. 19 by an unusually large half-point, a dramatic shift after more than two years of high rates that helped tame inflation. but also made borrowing painfully expensive for American consumers.
Subscribe to Independent Premium to bookmark this article
Want to bookmark your favourite articles and stories to read or reference later? Start your Independent Premium subscription today.