Czech National Bank statement

Published: 17.03.2020 Related countries:  India India

ČNB cuts two-week repo rate by 0.5 p.p. to 1.75%





The Czech National Bank (ČNB) board cut the two-week repo rate by


50 basis points to 1.75% in connection with the coronavirus


epidemic. The board also decided to lower the Lombard rate to


2.75% and the discount rate to 0.75%. The board expressed its


readiness to further reduce interest rates. Furthermore, it confirmed


that ČNB is ready to respond to possible excessive fluctuations in


the koruna exchange rate with its instruments and revised its


intention to increase the countercyclical capital buffer for exposures


placed in the Czech Republic to 2.0% from July 1, 2020. Banks will


continue to maintain the current rate of this reserve at 1.75%.