Czech Interest Rate Cut – Currency Thoughts
Czech Interest Rate Cut
February 6, 2025
The Czech National Bank‘s two-week repo rate’s 25-basis point cut to 3.75% today is the fourth such move since August after 225 basis points of reduction between December 2023 and the middle of last year. A peak of 7.0% had been maintained for a year and a half. Czech CPI inflation, partly in response, fell from a peak in September 2022 of 18% to just 2.0% last June, but such is back at 2.8% now. Explaining policy in the future, officials wrote, “The Bank Board confirms its determination to continue its monetary policy in order to maintain inflation near the 2% target in the long term. At present, this still requires relatively high key interest rates.”
Copyright 2025, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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