Business News
Czech central bank cuts key interest rate to historic low ()
May 7, 2009, 12:04 GMT
Prague - The Czech Republic's central bank Thursday slashed the country's key rate to an all time low in a bid to spur borrowing and boost the country's ailing economy.
The Czech National Bank reduced the benchmark two-week repo rate by 25 basis points to 1.5 per cent, following a series of dramatic cuts earlier this year.
The bank cut the rate amid worries that inflation would drop bellow the bank's target of 3 per cent, which it tolerates to fluctuate 1 per cent above and below.
The Central European country of 10.3 million was largely spared the meltdown on world financial markets but its export-driven economy has been hit by dropping demand in Western Europe, the country's major export market.
The latest cut brought the main Czech rate closer to that in the 16 countries using the euro. The European Central Bank Thursday slashed the rate to the eurozone's record low of 1 per cent.
COMMENT
blog comments powered by DisqusLatest Headlines in Business
- 1. US unemployment drops further, but figures disappoint
- 2. Japan stocks down as euro debt outweighs positive US data
- 3. Iraq resumes oil flow after pipeline blast in Turkey
- 4. Spanish bond auction lifts eurozone worries, sinks Japan stocks
- 5. ECB holds rates, rules out early exit from emergency measures
Older Talkback
