Analysts: Czech central bank set to cut interest rates, maybe to ‘technical zero’

03-05-2020

The Czech National Bank board will probably reduce the key interest rate by half a percentage point to 0.5 percent on Thursday (May 7) to mitigate the economic impact of the coronavirus pandemic, according to a ČTK poll of economists.

Some analysts polled by ČTK do not rule out a drop in the base rate to ‘technical zero’. The central bank board last cut the key interest rate by 0.75 pp at the end of March, to 1 percent. It had already cut rates by 0.5 pp at an extraordinary meeting on March 16.