Czech cbank surprises, cutting rates by 25bp to 5%

More than a year after it last cut interest rates, the Czech National Bank on Feb 22, 2001 said it was lowering its two-week repo rate to 5% from 5.25%, its discount rate to 4% from 5% and the Lombard rate to 6% from 7.5%. The new interest rates will be effective Feb 23, the bank said in a statement.

The market began to expect that the central bank may decide to lower the rates due to continued low inflation, but most didn't expect to see it happening as early as Feb 22. A few analysts had ex