Czechs Ease Lending Rules After High Rates Cool Housing Market

The Czech central bank took the first step to ease lending conditions after the highest interest rates in more than two decades curbed credit growth and cooled the property market.

The policy board on Thursday softened approval standards for mortgages and lowered one of the capital requirements for lenders. The Czechs are fine-tuning their strategy to balance the need for a continued fight against double-digit inflation and allowing easier access to home ownership at a time of declining real wages.