PRAGUE (AP) — The Czech Republic’s central bank on Wednesday cut its key interest rate for a third straight time amid falling inflation and an effort to help the economy.

The bank started to trim borrowing costs by a quarter-point on Dec. 21, which marked the first cut since June 22, 2022. It continued with a cut by a half-percentage point on Feb 8.

Inflation declined to 10.7% in 2023 from 15.1% in 2022, according to the Czech Statistics Office, and dropped to 2.0% year-on-year in February, which equals the bank’s target.

The Czech economy contracted by 0.2% in the last three months of 2023 compared with a year earlier.

The Czech bank’s decision comes as major central banks around the world are discussing when to start bringing down borrowing costs.

Source