The Czech National Bank abandons its technical zero policy after five years
The CNB Bank Board decided at its meeting on 3 August to increase the two-week repo rate by 20 basis points to 0.25%. At the same time, it decided to increase the Lombard rate by 25 basis points to 0.50% and to keep the discount rate unchanged at 0.05%. The new interest rate levels came into effect on 4 August.
This was the first change in interest rates since November 2012, when the repo rate was cut to technical zero. Additionally, the decision taken on 3 August was the first increase in domestic interest rates since February 2008.
Senior Relationship Manager, GSS Czech Republic