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Czech central bank hikes rates

The Czech National Bank (CNB) hiked its key interest rate for the sixth time in 12-months earlier this morning.

The CNB increased its two-week repo rate to +1.5% from +1.25%, and its Lombard rate to +2.5% from +2.25%.

The vote was 6-1 to raise rates – one voted to keep policy steady.

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.”

He indicated that monthly indicators point to “solid economic growth in Q3.

Expect new forecast will be key for the next CNB rate decision.

CZK has come under pressure, falling -0.56% outright to $21.8592 and against the EUR, down -0.25% to €25.6593.

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