The Czech central bank raised rates for the third time in less than a year, it said.
In its first meeting in the new year, the board of Ceská národní banka decided to raise the two-week repo rate by 25 basis points to 0.75% and the Lombard rate by 50 basis points to 1.50%. It maintained its discount rate at 0.05%.
Inflation came in at 2.5% for the full year 2017, well above the 2% target of the central bank. Inflation eased to 2.4% in December from 2.6% in November and 2.9% in October.
The Czech koruna traded at a five-year high after the rates move.
