Czechs surprise with 75 basis-point cut

The Czech National Bank slashed its key rate by 75 basis points to 2.75% on Thursday on signs inflation risked falling below target next year.

Four of the five board members attending the meeting backed the cut, with the dissenter supporting a 50 basis-point loosening. Two of the seven board members were absent.

Analysts expected a 25 to 50 basis point cut.

However, the central bank noted that its latest forecast for economic growth was "markedly lower" than previously thought and that it now