Czech National Bank raised interest rates

Published: 03.11.2017 Related countries:  Israel Israel

This hike was expected and it is probably not the last one in the coming months.

Czech National Bank (CNB) raised its basic interest rate for the second time in 2017. The basic rate newly totals 0.5%, the highest since 2012. Economists argue that the koruna’s exchange rate’s development supports the interest rate hike. Following the announcement of CNB’s decision, the koruna lost half a percentage point on the euro. Wages are growing substantially and real estate prices are soaring at a double-digit rate. According to economists and businessmen, the risk of substantial increase in loan prices will come in about a year. Generali CEE Holding’s chief economist Miroslav Singer says in an interview for daily E15 that he does not expect any major increase in loan pries. British central bank has raised its interest rates as well, Hospodářské noviny reports. Bank of England kept its interest rate at 0.25% for more than a decade and raised its rate to the same level as CNB, i.e. 0.5%, on November 2, 2017.