The Czech National Bank was expected to make its first interest rate cut in more than three years on Thursday as policymakers meet amid a backdrop of slowing inflation and a sagging economy.
Markets are pricing in a rate cut on Thursday, and 12 of 15 analysts in a Reuters poll forecast a 25 basis point reduction.
The Czech central bank lifted borrowing costs by 675 basis points to more than two-decade highs between June 2021 and June 2022 as central European policymakers sharply tightened policy to battle inflation surging to double-digit rates.
Read More : Czech Central Bank Poised to Initiate Rate-Easing Cycle on Thursday