Czech National Bank building, Prague. Photo by V_E/Shutterstock.com
At the same time, the central bank lowered the Lombard rate to 2% and the discount rate to 0.05%. The aim is to mitigate the negative impact of the coronavirus pandemic for Czech companies and households, the bank said in a statement.
After the rate cut, the Czech koruna extended losses while the finance ministry sold huge amounts in debt tenders for a second day as it ramped up borrowing, Czech Radio said.