Central Bank cuts key short-term interest rate

07-08-2008

The Czech National Bank has moved to cut its key short-term interest rate by a quarter of a point, to 3.50 percent, a bank spokeswoman said. The bank’s board decided to cut its refinancing rate for 15-day operations to 3.50 percent, the discount rate to 2.50 percent and the Lombard rate to 4.50 percent. It was the first cut in the bank's key rate since April 2005. Experts say the reduction was motivated by the strong crown.