Czech central bank sharply increases its key rate to 2.75%

PRAGUE (AP) — The Czech Republic’s central bank has again sharply increased its key interest rate by a point and a quarter to 2.75% to tackle soaring inflation amid the economy’s recovery from the coronavirus pandemic. Thursday’s surprising move was the biggest single hike of the rate since 1997. Analysts had mostly predicted a half-point or a three-quarter point increase. The central bank considers high inflation as a major threat. Inflation jumped to 4.9% in September, well above the bank’s 2% target. The last time the bank changed its rates was in September when it increased the key interest rate by three quarters of a point to 1.5%.