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%.