Czech central bank hikes key rates
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The Czech National Bank (CNB) raised its benchmark two-week repo rate by 25 basis points to 0.50% on Wednesday, in a bid to keep inflation within its target in coming months as the economy reopens and recovers from the coronavirus pandemic, according to a report by Czech Radio.
It was the first tightening move from the CNB Board since February of 2020, as headline inflation hovered the upper limit of the central bank's 1% - 3% tolerance range in the previous two months.
In May, consumer prices advanced 2.9% from a year earlier, mostly due to prices of automobiles, auto fuels, and lubricants.
Policymakers have said they aimed at preventing global factors, such as supply chain issues and commodity prices, from pushing headline inflation rates above the upper limit of its tolerance band.
The Lombard rate was also raised by 25 basis points to 1.25%, while the discount rate was left unchanged at 0.05%.
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