The Czech National Bank raised its base interest rate by 0.25 percentage point to 4.00 percent, after four of its seven board members voted for the increase. The decision was close, and the bank has now lifted rates to the highest level since the start of 2025. Several commercial banks have responded by raising the rates they pay on deposits.
Central bank cites inflation expectations
Governor Aleš Michl described the move as a preventive step. He said it was aimed at curbing inflation expectations and limiting the spread of the energy-price cost shock to other price areas. Michl added that all options remain open. The bank did not signal how far it might go from here.
The vote split the board almost evenly. Three members opposed the increase, leaving the outcome to a narrow majority.
Banks move deposit rates higher
mBank plans to pay 4.41 percent on its mSpořicí účet Plus account for balances up to 250 thousand Czech crowns, from 16 November. Balances between 250 and 500 thousand crowns earn 4.11 percent, while its basic account pays 3.01 percent.
Raiffeisenbank’s Bonusový spořicí účet offers up to 4.50 percent on balances up to 250 thousand crowns, from 1 December. Vladimír Bureš, deposit products manager at Raiffeisenbank, said the top rate does not require complex conditions. Over 80 percent of active clients already meet the requirement of ten card payments a month, he said.
Komerční banka is offering a promotional rate of 4.20 percent on its Spořicí účet for deposits up to 1 million crowns, with a three-month guarantee. Raiffeisenbank’s card-only rate is also 4.20 percent.
Higher loan costs expected
Strategist Bohumil Žitný of Žitný a partneři said the rate increase would gradually feed through the whole financial market. Besides higher loan rates, he expects pressure on deposit rates to continue.
Related: Czech central bank raises base rate to 4 percent · Czech central bank raises rates in 4-3 vote, koruna weakens
Source: Czech National Bank
