Czech central bank keeps rates on hold as inflation steadies

The Czech National Bank (CNB) left its benchmark two-week repo rate unchanged at a more than two-decade high of 7.00% on Wednesday, keeping rates steady as policymakers see signs of a peak in double-digit inflation.

The central bank launched one of Europe's sharpest rate-hiking cycles last year - lifting the key rate by 675 basis points between June 2021 and June 2022 - but it has been on hold since new Governor Ales Michl took the bank's helm in July and three new members joined the seven-seat board.