Czech National Bank Holds Policy Rate Steady

2025-08-07 13:06 By Dongting Liu 1 min. read

The Czech National Bank kept its two-week repo rate unchanged at 3.5% in August 2025, in line with market expectations, marking a second consecutive pause following a 25-basis-point cut in May.

The discount and Lombard rates also held steady at 2.5% and 4.5%, respectively.

Headline inflation eased to 2.7% year-on-year in July, close to the upper limit of the 1-percentage-point tolerance band around the 2% target.

The central bank maintained a cautious outlook, citing persistent upside risks to achieving the inflation goal.

Meanwhile, preliminary data showed the economy expanded 2.4% year-on-year in the second quarter, driven by household consumption and marking the fastest growth since Q2 2022.

Policymakers signaled limited scope for further rate cuts and indicated monetary policy is likely to remain stable for the foreseeable future.

The central bank remained prudent, continuing to monitor inflationary pressures in the services sector and signs of economic recovery later this year.



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