The Czech National Bank increases interest rates by 0.25 points to 1.75% due to inflation

The Czech National Bank increases interest rates by 0.25 points to 1.75% due to inflation



The Czech National Bank (CNB) rose today, for the fifth time this year, its benchmark interest rate by 0.25%, to 1.75%, to reduce inflationary pressures related to the overheating of the economy.

With effect from tomorrow, the maximum rate at which the issuing bank borrows from private banks in two-week liquidity draining operations will go to 1.75%, according to a CNB press release.

These increases in the price of money were justified by the overheating of the economy and the increase in inflation, which stood at 2.3% in September, an indicator that the central bank wants to keep close to 2%.

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