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Czech central bank lifts key interest rate to tame inflation

PRAGUE (AP) — The Czech Republic's central bank has raised its key interest rate for the third time since June - by a quarter point to 2.00%, the highest level in more than 10 years. Thursday's move, expected by some in financial markets, is the first since November.

Some expected it because the inflation rate reached 3% in March and is higher than expected while the national currency, the Czech crown, is weaker than expected. The central bank has been steadily lifting its key rate since August 2017, when it was at a los of 0.05%.

But the bank is not expected to raise the rate any time soon because the local economy is largely dependent on the economies in the Western Europe that are slowing down.

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