June 27, 2018 / 12:29 PM / 3 months ago

Czech bank boards unanimous in hiking rates as price pressures grow

PRAGUE, June 27 (Reuters) - The Czech central bank’s board voted 6-0 to hike interest rates on Wednesday, earlier than its forecast had expected, as a weaker exchange rate added to growing domestic inflation and foreign inflationary pressures, the bank said.

The bank’s quarterly forecast from May had seen the next rate rise only around the end of the year but a series of pro-inflationary data and the weaker crown prompted several board members to declare a preference for an earlier move.

The bank raised the main repo rate by 25 basis points to 1.0 percent and the Lombard rate for overnight credit to banks by 50 basis points to 2.0 percent. The discount rate used for overnight deposits remained at 0.05 percent. (Reporting by Jan Lopatka)

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