The Czech Republic’s economy is showing signs of recovery, as evidenced by the latest statistics from the Czech Statistics Office. Preliminary figures suggest that the economy grew by 0.4% compared to the same quarter in 2023, and by 0.5% compared to the previous quarter. This growth is fueled in part by the efforts of the Czech Republic’s central bank, which has announced a fourth consecutive cut in its key interest rate.
The rate was reduced by half a percentage point to 5.25%, a move that analysts had anticipated. This series of cuts began on December 21, 2022, marking the first reduction since June of that year. The decision by the Czech central bank aligns with global trends, as central banks worldwide are monitoring inflation levels to determine if rate cuts are appropriate.
While inflation in the Czech Republic dropped from 15.1% in 2022 to 10.7% in 2023, and further decreased to 2.0% year-on-year in February, meeting the bank’s target, there is still ongoing uncertainty about economic conditions moving forward