The Czech central bank cuts key interest rate for the first time since June 2022 to help economy
ABC News
The Czech Republic’s central bank has cut its key interest rate to help the country's struggling economy
PRAGUE -- The Czech Republic’s central bank cut its key interest rate Thursday hoping to give the country's struggling economy a boost.
The cut by a quarter of a percentage point brought the interest rate down to 6.75%. It was the first time the bank cut the rate since June 22 last year.
Last year the bank raised its key interest rate as it tried to combat soaring inflation. The hike of a percentage point and a quarter took the rate to 7%, the highest level since early 1999. It was the ninth straight increase since June 2021.
The move took place at the last meeting of the bank’s board on monetary policy under outgoing governor Jiri Rusnok.
On July 1, Rusnok was replaced by Ales Michl, a member of the bank’s board since 2018 who opposed previous rate hikes.
