The Czech Republic’s central bank has announced its decision to reduce its key interest rate for the eighth consecutive time, citing low inflation and a slow economic recovery. The latest cut, which was widely anticipated by analysts, brings the interest rate down by a quarter of a percentage point to 4%.
This series of rate cuts began on Dec. 21, with subsequent reductions of half a percentage point on Feb. 8, March 20, May 2, and June 27. Additional cuts of a quarter of a percentage point were implemented on Aug. 1 and Sept. 25.
According to data from the national statistics office, the Czech economy grew by 1.3% year-on-year in the third quarter of 2024, marking a 0.3% increase compared to the previous quarter.
Inflation stood at 2.6% year-on-year in September, slightly lower than the previous month. The central bank’s target inflation rate is 2%.
Meanwhile, the European Central Bank, responsible for setting interest rates for eurozone countries, recently reduced its benchmark rate from 3.5% to 3.25% on Oct. 17, marking the third rate cut since June.
On the other side of the Atlantic, the U.S. Federal Reserve is poised to lower its key interest rate for the second consecutive time in response to easing inflationary pressures, a move that comes amidst concerns over the impact of inflation on the American economy.
