CNB Raises Key Interest Rate To 1.5%

The Czech Republic’s central bank has raised its key interest rate for the third time since June, by a quarter point to 1.50 percent.


Wednesday’s move, which was expected in financial markets, is the fourth increase this year and analysts expect the trend to continue.


The hike comes as the annual inflation rate reached 2.5 percent amid growing wages and a tight labor market in the booming economy.


In 2012, the central bank had cut its key interest rate to 0.05 percent, the lowest since the country was formed in 1993 after the breakup of Czechoslovakia, to help the struggling export-oriented economy.


The bank first increased the rate to 0.25 percent last year in August and has been steadily lifting it since.