Czech Central Bank Cuts Key Interest Rate to 6.75%

In a bid to boost the struggling economy, the bank makes its first rate cut since June 2022 amid high inflation and economic contraction.

The Czech Republic's central bank has cut its key interest rate by a quarter of a percentage point, bringing it down to 6.75%.
This is the first time the bank has cut the rate since June 2022, following a series of nine consecutive increases aimed at combating inflation.
The decision was made under the new governor, Ales Michl, who had opposed previous rate hikes.
The Czech economy has been struggling, with a contraction of 0.7% year-on-year in the third quarter and a 0.5% contraction compared to the previous quarter.
Inflation in the country reached 18% in September last year, and was at 7.3% in November this year, well above the bank's 2% target.