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Czech Central Bank Holds Rate Steady

Czech Central Bank Holds Rate Steady

The Czech central bank left its key interest rate unchanged on Thursday, citing substantial risks and uncertainty in the backdrop of the second wave of the coronavirus pandemic.

The Bank Board unanimously kept interest rates unchanged, the Czech National Bank said in a statement. The decision was in line with economists’ expectations.

The two-week repo rate was left at 0.25 percent, the discount rate at 0.05 percent and the Lombard rate at 1 percent.

“The Bank Board assessed the risks and uncertainties of the current forecast in the context of the ongoing second wave of the pandemic as remaining very substantial,” the CNB said.

The bank also said that it is not ruling out the risk that the Covid-19 pandemic situation could get worse and the risk of further lockdowns domestically and abroad.

Further, the bank said the risk of a no-deal Brexit is increasing.

The material has been provided by InstaForex Company – www.instaforex.com