The Czech National Bank (CNB) raised the basic interest rate by 0.25%, from 1.75%, to 2%, The decision was announced after the meeting of the governing council on Thursday, May 2nd, in Prague. In addition, the Lombard rate was raised to 3%, and the discounted interest rate to 1%.

The new rates will take effect from Friday, May 3rd. Analysts, suggested that the new interest rate, which is the highest it has been in 10 years, was the result of inflation and a resilient domestic economy. They expect banks to raise the rates for consumer loans and mortgages, shortly.