Czech National Bank Raises Policy Interest Rate
June 23, 2021
Officials at the Czech National Bank doubled their 2-week repo rate to 0.50%, marking its first hike in 16 months. 2020 had begun with an ill-timed 25-basis point hike in February, just before the pandemic hit. That move was quickly reversed with a pair of cuts totaling 125 basis points in March and an additional 75-basis point reduction in May 2020. Today’s tightening represents a response to rising inflation, which at 2.9% is pressing against the ceiling of the central bank’s 1-3% target range.
Copyright 2021, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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