The Czech central bank cuts key interest rate for the first time since June 2022 to help economy

PRAGUE (AP) — The Czech Republic’s central bank has cut its key interest rate to help the country’s struggling economy. The drop by a quarter of a percentage point brought the interest rate to 6.75%. It was for the first time the bank dropped the rate since June 22 last year. After inflation in the Czech Republic soared to 18.0% in September last year, it was at 7.3% in November, which is still well above the bank’s 2% target. The Czech economy contracted by 0.7% year-on-year in the third quarter, and by 0.5% compared with the previous quarter for the third straight quarter.