Czech central bankers keep interest rate at 3.75%

Czech central bankers keep interest rate at 3.75%

Czech central bankers keep interest rate at 3.75%. / bne IntelliNews

By bne IntelliNews March 26, 2025

The Czech National Bank (CNB) has kept the key interest rate unchanged at 3.75%, matching wide market expectations. The rate is the lowest since January 2022.

“Today’s decision reflects updated inflation outlook, its risks and evaluation of the new data,” the CNB statement reads, adding that its updated prognosis expects inflation to hover slightly above the inflation target of 2%.

“Pro-inflation risks persist, which demand the continued exercise of moderately restrictive policy,” the CNB also stated. All the seven members of the bank board backed the decision.

CNB highlighted the continued revival of household consumption, which helped bring the economy growth to 1.8% year on year in the last quarter of 2024. CNB remains wary of the weak foreign demand and expects the introduction of US tariffs on EU imports to contribute negatively to the developments.

“Considering the current level of the CNB interest rates and considering the global uncertainties, this careful attitude is understandable,” Generali Investments analyst Radomír Jáč told Czech Press Agency, adding that the pause in lowering of rates, which began in December 2023, was expected.

The Czech koruna (CZK) did not move in response to the decision.

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