Czech central bank ups key rate again amid high inflation

PRAGUE (AP) — The Czech Republic’s central bank has increased its key interest rate by a quarter-point to 0.75% to tackle inflation amid the economy’s rebound from the coronavirus pandemic.

It was the second such increase in about two months.

Analysts had predicted Thursday’s move, and a member of the bank’s board had indicated that the rate might be hiked further later in the year as the bank considers high inflation as a major threat.

Inflation reached 2.8% in June, above the bank’s 2% target, as the economy registered a record 7.8% year-on-year growth in the second quarter.

The last time the bank changed its rates was in June when it increased the key interest rate by a quarter-point to 0.5% in an effort to tame inflation.

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