The Czech central bank announced today that it was cutting interest rates for the eighth consecutive time, by 0.25 percentage points, as inflation remained low and the economy began a slow recovery, the Associated Press reported.
Thus, the indicator level is now at 4 percent, as expected by analysts.
The bank began cutting borrowing costs by a quarter of a percentage point on December 21, the first cut since June 22, 2022. This was followed by further cuts of half a percentage point on February 8, March 20, May 2 and June 27. and a quarter percentage point on August 1 and September 25.
The Czech economy grew by 1.3 percent on an annual basis in the third quarter of 2024, 0.3 percent higher than the previous 3 months, according to the National Statistics Office.
In September, the inflation rate was 2.6 percent, or down 0.4 percent compared to August. The bank's target is 2 percent.
The European Central Bank (ECB) cut borrowing costs from 3.5 percent to 3.25 percent on October 17, its third interest rate cut since June.
The US Federal Reserve Board is expected to cut interest rates for the second consecutive time today in response to continuing downward inflation pressures that have upset many Americans and contributed to Donald Trump's victory in the presidential election.