Czech National Bank raises basic interest rates to 0.75 PCT

The Czech National Bank announced Thursday that it had increased its basic interest rate by 0.25 percentage points to 0.75 percent.

The move had been widely expected with the crown strengthening ahead of the announcement. It moved to its highest level against the euro since the so-called low crown policy was ended last year before retreating slightly.

The board already decided twice last year to raise interest rates by the same margin, the last decision coming at the start of November.

Bank governor Jiří Rusnok has indicated in the past that a series of gradual interest rate rises can be expected as inflation picks up in the country and economic growth remains strong.