Ceska Narodni Banka Holds Repo Rate at 0.75%

The Ceska Narodni Banka (CNB) maintained the two-week repurchase rate unchanged at 0.75% as expected.  The Bank also held the the discount rate unchanged at 0.25% and the Lombard rate at 1.75%.  The Bank said: "Consistent with the forecast is broad stability of market interest rates at the start of the forecast horizon and a gradual rise in rates starting in late 2011/early 2012.  The rates do not react to the first-round effects of the VAT increase".

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 1.8% in June, compared to 2% in May, 1.6% in April, and 1.7% in March this year, and above the Bank's official inflation target of 2%.

www.CentralBankNews.info