Central bank cuts surprisingly interest rates by quarter point to 2.25 percent

The central bank has unexpectedly cut interest rates by a quarter of a percentage point, with the key repo rate down at 2.25 percent as of Friday. According to analysts, the reason for the decision was a new inflation forecast revised downwards and a stricter monetary policy due to the strong crown. The crown reaction came immediately, with a fall by 20 hellers to the euro to 30.25 crowns to the euro. Tied to the repo rate of the central bank are interest rates on bank deposits and loans.