The Czech National Bank decided to leave the country’s interest rates where they are, meaning that the base rates that dictate commercial loans will remain at 2 percent. The bank council on interest rates had considered raising the rates because inflation in the Czech Republic grew to 3.1 percent in November. It appears to have been dissuaded, however, from raising them because of concerns over developments abroad and and signs of a weakening economy at home. The governor of the CNB, Jií Rusnok, said that the idea of cutting interest rates was off the table at this point. “The debate was purely about whether to raise rates or leave them alone,” he said. “Thee was no other alternative. And I’d say that the trend is gradually shifting to lifting them.”
