Czech central bank cuts key interest rate to 3.5% as inflation drops more than expected

Czech central bank cuts key interest rate to 3.5% as inflation drops more than expected

The Czech Republic’s central bank has cut its key interest rate again, with lower-than-expected inflation.

The Bank Board of the Czech National Bank decided on Wednesday to cut the base interest rate by a quarter of a percentage point to 3.50 percent. It did so a day after the Czech Statistical Office released a preliminary estimate of April inflation, which at 1.8 percent year-on-year was the lowest in seven years.

Czechs Set to Cut Rates But Keep Hawkish Tone

Czech policymakers will probably cut interest rates again after inflation slowed more than expected, but they may also signal a lengthy pause is now in store due to persistent price risks.

Prague - The Czech Statistical Office (CZSO) will publish today how retail sales performed in March. It will also announce the development of tourism and services in the first quarter. In February, retail sales excluding sales and repairs of motor vehicles accelerated year-on-year growth to 3.8 percent from January's revised 3.2 percent. Hotels, guesthouses and campsites accommodated almost five million guests in the last quarter of last year, 7…

Price growth in the Czech Republic has been successfully brought under control recently, which, among other things, opens up room for the Czech National Bank to lower interest rates. At its meeting on Wednesday, its seven-member bank board decided to lower the base interest rate (the two-week repo rate) by 0.25 percentage points to 3.5 percent....

Czech central bank cuts key interest rate to 3.5% as inflation drops more than expected - EUROPE SAYS

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