Czech National Bank Holds Interest Rate at 0.75%

The Ceska Narodni Banka (CNB) held the two-week repurchase rate unchanged at 0.75%.  The Bank also maintained the the discount rate unchanged at 0.25% and the Lombard rate at 1.75%. The Bank said: "Headline and monetary-policy relevant inflation will be close to the inflation target over the monetary policy horizon.  Consistent with the forecast is broad stability of market interest rates in the near future and a gradual rise in rates starting in 2011 Q4.  Risks to the forecast are balanced for monetary-policy relevant inflation."

The Czech central bank also held the repurchase rate unchanged at its May meeting this year, its last change was a 25 basis point cut in May 2010.  The Czech Republic reported annual inflation of 2% in May, up from 1.6% in April, and 1.7% in March this year, and above the Bank's official inflation target of 2%.  

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