The Czech National Bank (CNB) is expected to raise interest rates again on Thursday at its regular meeting. Most economic observers are predicting a hike of 0.25 percent to 1.75 percent. This would be the fourth consecutive meeting at which the bank’s council raised interest rates. The last hike was made at the council’s meeting in September when rates were raised 0.25 percent to 1.5 percent. UniCredit Bank’s chief economist told the Czech News Agency the CNB was just making up for lost time. “The weak koruna and the slow speed at which previous monetary tightenings have been reflected in the interest rates of commercial banks all speak for the raising of rates,” he said. “Raised rates are completely expected by the markets so if the CBN didn’t raise them it would cause a weakening of the koruna.”
