Czech National Bank increases interest rate to 1.75 percent

The Czech National Bank on Thursday raised the basic interest rate by a quarter of a percentage point to 1.75 percent. It is already the fifth hike in interest rates this year, as the bank response to rapid pace of wage growth and the resulting impact on inflation.

According to Central Bank governor Jiří Rusnok, there will be no more hikes before the end of the year. The Czech National Bank has also downgraded its growth forecast for this year to 3.1 percent and for next year to 3.3 percent.