The bank started to trim borrowing costs in December last year, the first cut since June 2022.
The most recent reduction follows a decision from the US federal reserve to lower its benchmark interest rate by a half-point last week, the first time the US central bank had lowered borrowing costs in more than four years.
The European Central Bank, meanwhile, reduced its deposit facility rate by a quarter-point to 3.5% earlier this month.
Pressure for Czech policymakers to lower borrowing costs was boosted by slower-than- expected wage growth.
The average real monthly wages in the Czech Republic grew 3.9% year-on-year in the second quarter of 2024.
That was down from a 5% rise in the previous three-month period and below market forecasts.
The size of the Czech economy was, however, up by 0.6% year-on-year in the second quarter of 2024, rising from the 0.3% recorded in the previous quarter.
The bank predicts growth of 1.2% for 2024.
Inflation in the Czech Republic was at 2.2% year-on-year in August, the same as the previous month and close to the bank’s target of 2.0%.
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Publish date : 2024-09-25 06:58:00
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