The Czech National Bank reduced its two-week repo rate by 25 basis points to 3.75% at its Bank Board meeting on 5 February 2025, continuing a gradual easing cycle as the central bank updated its macroeconomic outlook through the Winter 2025 monetary policy report, which the Board approved at the same session.
The Winter 2025 forecast, discussed at the 5 February meeting, provides the updated set of forecasts and analytical assumptions that underpin the Bank Board's current thinking on the appropriate path for interest rates. The simultaneous approval of a new quarterly report alongside a rate decision is a standard feature of the CNB's policy calendar.
FORECAST PROJECTS RATES STABLE FROM MID-2025
The Winter 2025 monetary policy report projects that interest rates will stabilise from around the middle of 2025 onwards.
EASING SINCE DECEMBER 2023
A reduction in the two-week repo rate feeds through to commercial lending rates in the Czech Republic over time, influencing the cost of mortgages, business credit facilities, and consumer finance products. Since the easing cycle began in December 2023 the repo rate has been cut from 7% to 3.75%, unwinding about half of the increases seen during the tightening phase.