The Czech Republic's central bank has announced its second consecutive interest rate cut in an effort to support the country's struggling economy. The half-percentage point reduction brings the key interest rate down to 6.25%, following a quarter-point cut in December 2022.
The decision to lower borrowing costs is a response to the Czech economy's contraction of 0.2% in the last quarter of 2023 compared to the same period in the previous year. This decline highlights the challenges faced by the country amid a global economic slowdown.
