PRAGUE: The Czech central bank (CNB) said it raised its key lending rate on Thursday in a move widely expected by analysts amid a strong economic growth and growing inflationary pressures.
"The CNB board raised its two-week repo rate by 25 basis points to 0.75 percent at its meeting today," the bank said in a statement on Thursday.
The rate hike follows increases in August and November, both by a quarter point.
Inflation in the Czech Republic rose to an average 2.5 percent in 2017, the highest level in five years, from 0.7 percent a year earlier.
This EU economy of 10.6 million people is heavily dependent on car production and exports to the eurozone.
The Czech finance ministry revised its growth forecasts for 2017 and 2018 up to 4.3 and 3.4 percent, respectively, from a previous 4.1 and 3.3 percent, citing a growth in household consumption and investment.
Statisticians will release their first flash estimate of 2017 growth on February 16.
In 2016, the Czech economy grew by 2.6 percent.
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