Czech central bank slashes key rate to 1%
Photo by V_E/Shutterstock.com
The Czech National Bank cut the main interest rate by 0.75 percentage points on March 26 to 1%, following a surprise cut of 0.5 pp on March 16, bringing borrowing costs to their lowest level since July 2018, Czech Radio reported.
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.