Czech central bank cuts key interest rate to 4% as inflation stays low

The Czech cardinal slope has trim its cardinal liking complaint for nan eighth clip successful a statement arsenic ostentation remains debased and nan system is making a slow recovery

PRAGUE -- The Czech Republic’s cardinal slope connected Thursday trim its cardinal liking complaint for nan eighth clip successful a statement arsenic ostentation remains debased and arsenic nan system is making a slow recovery.

The cut, which had been predicted by analysts, brought nan liking complaint down by a 4th of a percent constituent to 4%.

The slope started to trim borrowing costs by a quarter-point connected Dec. 21, nan first trim since June 22, 2022. Further cuts of half a percent constituent followed connected Feb. 8, March 20, May 2, and June 27. Cuts of a 4th of a percent constituent came connected Aug. 1 and Sept. 25.

The size of nan Czech system was 1.3% up year-on-year successful nan 3rd 4th of 2024, an summation of 0.3% compared pinch nan erstwhile 3 months, according to nan nationalist statistic office.

Inflation was astatine 2.6% year-on-year successful September, and down by 0.4%, compared pinch August. The bank’s target is 2%.

The European Central Bank, which sets liking rates for nan 20 countries that usage nan euro currency, cut borrowing costs from 3.5% to 3.25% connected Oct 17, its 3rd simplification of its benchmark complaint since June.

The U.S. Federal Reservewas group connected Thursday to reduce its cardinal liking complaint for a 2nd consecutive time, responding to a dependable slowdown of nan inflationary pressures that exasperated galore Americans and contributed to Donald Trump’s statesmanlike predetermination victory.