Central Banks
Czechs Shift Gears to Bolder Rate Cuts as Growth Outlook Worsens
- Central bankers cut rates by 50 basis points, one wanted more
- Koruna weakens most since August as market sees dovish signals
This article is for subscribers only.
The Czech central bank ramped up monetary easing as slowing inflation allowed officials to focus more on faltering economic growth.
Policymakers in Prague lowered the main interest rate by half a percentage point to 6.25% on Thursday, with one voting for an even bigger cut. That triggered the biggest koruna selloff in six months, after most analysts expected a repeat of December’s quarter-point reduction that kicked off the easing cycle.