Czech central bank raises interest rates for first time in nine years
Legacy of currency defence may cause future problems, analyst argues
The Czech National Bank (CNB) raised its policy rates for the first time in more than nine years today (August 3).
The CNB raised its main policy rate, the two-week repo rate, by 20 basis points from 0.05% to 0.25%. This was the first change in the rate since it was lowered to 0.05%, or a “technical zero”, in November 2012, and the first raise in policy rates since February 2008. The CNB also increased the Czech Republic’s Lombard rate by 25 basis points to 0.50%.
The monetary policy
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