This archived news story is available only for your personal, non-commercial use. Information in the story may be outdated or superseded by additional information. Reading or replaying the story in its archived form does not constitute a republication of the story.
PRAGUE (AP) — The Czech Republic's central bank has surprisingly raised its key interest rate by a quarter-point to 2.25% in response to higher inflation rates, a move that's helped lift the country's currency to its highest level against the euro since 2012.
Thursday's move, which was not expected in financial markets, is the first since since May. A hike had been pencilled in for later in the year as inflation is running at 3.2%, above the bank's target of 3%.
The central bank has been steadily lifting its key rate since August 2017, when it was at a low of 0.05%.
Following the hike, the Czech crown hit an 8-year high against the euro, dropping to below 25 crowns for one euro.
Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.