Close call on Czech rate decision

The Czech National Bank's monetary policy board voted 4-3 in favour of a quarter-point rate hike on Thursday. The increase raises the benchmark two-week repo rate to 3.25%.

The central bank increased the discount rate and Lombard rate by the same amount, to 2.25% and 4.25% respectively.

Uncertainty regarding the central bank's July inflation forecast led to the decision being a close one. The central bank said that factors causing uncertainty were:

· the impact of excise duties and VAT chang