Czech Central Bank Hikes Rates By A Quarter Point, Doesn't Rule Out Another Lift This Year

The Czech National Bank (CNB) hiked its key interest rate for the sixth time in 12 months early Wednesday morning. The vote was 6-1 in favor.

The CNB increased its 2-week repo rate to 1.5 percent from 1.25 percent, and its Lombard rate to 2.5 percent from 2.25 percent.

In the following press conference, Governor Jiří Rusnok stated that the CNB has "no commitment to raise rates again this year. However, it cannot be ruled out." Rusnok noted that monthly indicators point to "solid economic growth in Q3."

CZK was put under pressure by the news, quickly dropping 0.56 percent to $21.8592. Against the euro it fell 0.25 percent to €25.6593.

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