CNB: Interest Rate at Historical Low

Politics ♦ Published: November 2, 2012; 13:25 ♦ (Vindobona)

Today, the Czech National Bank (CNB) decided to cut the interest rate to 0.05%. Now, foreign exchange interventions are the only tool for CNB.

CNB: Interest Rate at Historical Low / Picture: ©

CNB reduced the base rate to 0.05% from 0.25%. As a result, CNB has no more leeway to reduce the interest rate further. With the interest cut, CNB hopes to boost economic growth. According to CNB´s governor Miroslav Singer, CNB will keep the interest rate low as long as there is no inflationary pressure.

As the interest cuts have almost no influence on the economy, non-standard…