The Czech National Bank published an analysis of how policy-rate changes passed through to household and corporate interest rates between the end of 2023 and June 2026. The two-week repo rate fell from 7% in December 2023 to 3.5% in May 2025 before rising to 3.75% by the end of the review period. Corporate loan and deposit rates adjusted rapidly, while transmission to mortgage rates was slower because of refinancing and refixing cycles. Most koruna-denominated corporate loans are linked to the Prague Interbank Offered Rate plus a credit margin, allowing market-rate changes to feed through almost immediately. Mortgage stocks developed two distinct interest-rate peaks from 2025, reflecting older loans still carrying rates of 2% to 3% and newer or refixed loans generally in the 4% to 5% range. Corporate and household deposit-rate distributions became more closely aligned as the repo rate declined, although the latest data showed rates rising again alongside an upward shift in the yield curve.
Czech National Bank2026-08-07
Czech National Bank finds rapid rate pass-through to corporate loans and deposits, slower transmission to mortgages
The Czech National Bank found that policy-rate changes passed rapidly into corporate loan and deposit rates but more slowly into mortgage rates. Mortgage stocks now show separate concentrations of older loans at 2% to 3% and newer or refixed loans at 4% to 5%.