Czech central bank cuts interest rates for the second straight time to help economy

PRAGUE (AP) — The Czech Republic’s central bank has cut its key interest rate for the second straight time in an effort to help the struggling economy. The cut by a half-percentage point Thursday brought the interest rate down to 6.25%. The bank also trimmed borrowing costs by a quarter-point on Dec. 21, which marked the first cut since June 22, 2022. The Czech economy contracted slightly in the last three months of 2023 compared with a year earlier. The Czech bank’s decision comes as major central banks around the world are discussing when to start bringing down borrowing costs. The European Central Bank and U.S. Federal Reserve left their rates unchanged in late January.