By Central Bank News
The Czech central bank has cut its key policy rate by 25 basis points to a record low of 0.50 percent, as widely expected, the bank said in a statement.
The two-week repo rate was cut to 0.5 percent and the Lombard rate, a ceiling for short-term rates, was also cut by 25 basis points to 1.5 percent. The discount rate remains unchanged at 0.25 percent, the bank said, referring to rules that still use a multiple of the discount rate as basis for calculating penalties.
“From the perspective of the spirit of the law the CNB deemed it justified to keep the sanction amounts above zero in such cases,” the bank said.
The Ceska Narodni Banka last eased monetary policy on 6 May 2010, when it lowered the repo rate by 25 basis points to 0.75 %.he history of settings of main instruments of monetary policy and Bank Board minutes available attwo-week repo tenders.
The reasoning behind the bank’s decision would be published later, the bank said.
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