Inflation forces Czech central bank to again raise key rate

PRAGUE (AP) — The Czech Republic’s central bank has again raised its key interest rate to continue its fight against soaring inflation.

Thursday’s hike of three-quarters of a point to 5.75% was the eighth straight increase since June. Most analysts expected an increase of half a point.

The previous hike by half a point took place on March 31.

The bank, which considers high consumer prices a major threat, also had indicated it would raise the rate. It is now at its highest level in 23 years.

It is expected inflation still might increase further, at least until June, amid Russia’s invasion of Ukraine

Fed by high energy prices, inflation jumped to 12.7% in March, well above the bank’s 2% target.

The bank’s decision comes a day after the U.S. Federal Reserve approved the biggest rate increase in more than two decades and on the day that the Bank of England raised its key interest rate to the highest level in 13 years.

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