Czech Republic’s central bank cuts key interest rate by quarter percentage point to 1.5 pct

Czech central bank cuts interest rates to 1.5 pct

PRAGUE — The Czech Republic’s central bank has cut its key interest rate by a quarter percentage point to 1.5 percent to help the economy combat reccession.

It is the lowest rate since the country came into existence after the split of former Czechoslovakia in 1993.

The anticipated move, announced Thursday, followed a half percentage point cut in February.

The export-oriented Czech economy has been hit hard as its major trading partners, including Europe’s biggest economy, Germany, face deep recession.

The country’s economy is expected to contract by 2.7 percent this year, according to the latest EU prediction.