Czech central bank cuts key interest rate to 4% as inflation stays low

PRAGUE (AP) — The Czech central bank has cut its key interest rate for the eighth time in a row as inflation remains low and the economy is making a slow recovery. The quarter of a percentage point cut, which had been predicted by analysts, brings the rate to 4%. The central bank started to trim borrowing costs by a quarter-point on Dec. 21, the first cut since June 22, 2022. The size of the Czech economy was 1.3% up year-on-year in the third quarter of 2024, and inflation was at 2.6% year-on-year in September.