The Bank Board of the Czech National Bank raised its basic interest rate to 2 percent, an increase of 0.25 percent, the Czech News Agency reports. It is the first rise since November 2018 and interest rates are now at their highest in the past 10 years.
Analysts told the Czech News Agency the increase is mainly due to developments in the country’s economy, with inflation rates rising above predictions in the first quarter of 2019 and the exchange rate for the Czech crown weaker than the bank predicted in February.
The bank has also decided to go ahead with 0.25 percent raises in the Lombard rate, which deals with short-term liquidity loans to commercial banks and the discount rate.
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