Czechs Say Room for More Easing Limited After Cautious Rate Cut

The Czech central bank said inflation risks limited room for further monetary easing as policymakers debated whether their latest “cautious” interest rate cut was the final move for now.

Rate setters in Prague lowered the benchmark by a quarter of a percentage point to 3.5% on Wednesday, taking it to the lowest level since 2021 and in line with the expectations of most analysts in a Bloomberg survey. The decision wasn’t unanimous as one of the seven board members dissented, preferring to keep borrowing costs unchanged.