PRAGUE, June 23 (Xinhua) -- The board of the Czech National Bank (CNB), the central bank of the Czech Republic, on Wednesday raised two key interest rates by 25 basis points during a scheduled meeting.
The CNB board upped the two-week repo rate (2W repo rate) by 25 basis points to 0.50 percent. It also increased the Lombard rate by 25 basis points to 1.25 percent, while leaving the discount rate unchanged at 0.05 percent.
According to the bank, these interest rates will be valid from June 24, 2021.
CNB Vice Governor Tomas Nidetzky said in an interview last week that raising interest rates would be important to curb inflation, which the CNB wants to keep below three percent. In May, inflation rate in the country stood at 2.9 percent, down from 3.1 percent in April.
Independent analysts predicted that there could be several more rate increases this year to stifle inflation.