CNB hikes in bid to tame inflation
Strong growth is boosting salaries and consumption in the Czech Republic
The board of the Czech National Bank (CNB) increased rates after its monetary policy meeting on August 2, as the strong economy pushes inflation above target.
The CNB raised the two-week repo rate by 25 basis points to 1.25%. It also increased the Lombard rate by 25bp to 2.25%, and the discount rate by 20bp to 0.25%. The move is the fifth hike implemented by the central bank since it started its current tightening cycle in August 2017.
One of the main factors behind the decision appears to be
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