As expected, the Bank Board of the Czech National Bank raised interest rates again today. The key interest rate, on which the interest rate on commercial loans is derived, rose by 0.25 percentage point to 0.75 percent. Central Bank spokeswoman Markéta Fišerová informed about it. According to economists, the main reason for the increase in rates is fears of rising inflation related to the economic recovery. According to economists, the CNB will continue to raise interest rates.
At its last monetary meeting on 23 June, the Council raised interest rates for the first time since February 2020. The key interest rate, on which the interest rate on commercial loans is based, then rose by 0.25 percentage point to 0.5 percent. Four members of the Bank Board voted in favor of this decision. Bank Board member Vojtěch Benda even voted in favor of raising the key interest rate by 0.5 percentage point. Two members, Aleš Michl and Oldřich Dědek, were in favor of leaving interest rates unchanged. Before the pandemic last February, the base rate was 2.25 percent.
Interest on bank deposits and loans is derived from central bank rates. Businesses have higher interest rates on investment and operating loans, and more expensive housing loans on households.