The Czech Republic's central bank has announced its seventh consecutive cut to the key interest rate in response to low inflation and a slow economic recovery. The latest cut, as predicted by analysts, reduced the interest rate by a quarter of a percentage point to 4.25%.
This series of rate cuts began on Dec. 21, with subsequent reductions on Feb. 8, March 20, May 2, June 27, and Aug. 1. The Czech economy saw a modest year-on-year growth of 0.6% in the second quarter of 2024, with a 0.3% increase compared to the previous quarter, according to the Czech Statistics Office. The central bank forecasts a growth rate of 1.2% for the full year.
