The Czech National Bank raised its benchmark two-week repo rate by 25bps to 2 percent on May 2nd 2019, as widely expected, bringing borrowing costs to the highest level since February 2008. Also, the Lombard rate and the discount rate were lifted by 25bps to 3 percent and to 1 percent, respectively. The annual inflation rate rose to 3 percent in March from 2.7 percent in February, in line with the central bank predictions of higher inflation. Interest Rate in Czech Republic averaged 4.83 percent from 1995 until 2019, reaching an all time high of 39 percent in June of 1997 and a record low of 0.05 percent in November of 2012.
Interest Rate in Czech Republic is expected to be 1.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Czech Republic to stand at 2.25 in 12 months time. In the long-term, the Czech Republic Interest Rate is projected to trend around 2.50 percent in 2020, according to our econometric models.