RTTNews - Thursday, the Czech National Bank unexpectedly reduced its key interest rate to the lowest level on record.

The central bank cut its two-week repo rate by 25 basis points to 1.25%. Economists had forecast the bank to hold the rate at 1.50%.

The discount rate was cut to 0.25% and the Lombard rate was lowered to 2.25%. The new interest rate levels come into effect on 7th August 2009.

The current level of the monetary policy rates is the lowest in the history of the Czech Republic, the central bank said.

For comments and feedback: contact editorial@rttnews.com