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06.08.202612:45:57UTC+00Czech National Bank Leaves Key Rate Unchanged

The Czech National Bank kept its two-week repo rate unchanged at 3.75% in August 2026, halting its tightening cycle after implementing its first interest rate hike since 2022 at the previous meeting. Policymakers acknowledged that, although headline inflation had remained below the central bank’s target for most of the year, underlying demand-driven inflationary pressures were still present. They noted that headline inflation was being dampened by volatile components, particularly food prices, while government measures to curb price growth also contributed to keeping inflation below target. At the same time, economic growth eased in the second quarter of 2026, slowing to 2% from 2.2%.

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