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Czech Republic: Aggressive rate cut of 75bp
Thu, Nov 6 2008, 14:02 GMT
by Lars Christensen
The Czech central bank (CNB) has today cut its key policy rate by 75bp to 2.75%. We had expected a 25bp cut. This was also the consensus expectation.
This is a very clear signal that the CNB is very worried about the slowdown in the Czech economy - and rightly so in our opinion. This is an aggressive move, but it is hard to be critical about it given the fact that Czech GDP is likely to drop sequentially in Q3 and Q4 and inflation in the coming months is likely to come down significantly.
Published on Thu, Nov 6 2008, 14:04 GMT
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