The Czech National Bank (CNB) Bank Board kept the two-week repo rate unchanged at 3.50 %, leaving the discount and Lombard rates at 2.50 % and 4.50 %, respectively, without offering new economic commentary. Following a 25 bp cut in May 2025, the policy rate has been held steady at 3.50 % in every meeting since. In its most recent detailed assessment in December 2025, the Board noted headline inflation had hovered around the 2 % target since January 2024 and was expected to stay slightly above that level through 2026, while core inflation remained elevated amid tight labour conditions, 7.1 % wage growth and Q3-2025 GDP growth of 0.8 % q/q and 2.8 % y/y. At that time it highlighted upside risks from credit expansion, money supply growth, services and property prices, and fiscal spending, countered by the possibility of a stronger koruna and weaker euro-area activity. The Board has said future decisions will hinge on incoming data and that maintaining a relatively tight stance is necessary to ensure inflation stays close to target.
Czech National Bank 2026-02-05
CNB keeps two-week repo rate steady at 3.50 %
Czech National Bank held the two-week repo rate at 3.50 % and kept the discount and Lombard rates at 2.50 % and 4.50 %, noting policy remains data-dependent. The Board, unchanged since its May 2025 cut, still deems a tight stance necessary to keep headline inflation near the 2 % target amid elevated core pressures.