# Czech National Bank raises its key rate to 4% on a 4–3 vote

> The CNB Bank Board raised the two-week repo rate by 0.25 percentage point to 4.00% on 5 November 2026, with three members voting to hold. The new rates apply from 6 November.

- Canonical URL: https://forextradingcommunity.com/news/czech-national-bank-raises-rate-to-4-percent-november-2026/
- Type: Central banks
- Published: 2026-11-06
- Updated: 2026-11-06
- Publisher: Forex Trading Community (https://forextradingcommunity.com), FTC Editorial Team
- Currencies: CZK, EUR

The Bank Board of the Czech National Bank (CNB) raised the two-week repo rate by 0.25 percentage point to 4.00% at its monetary policy meeting on 5 November 2026. It raised the discount rate by the same amount to 3.00% and the Lombard rate to 5.00%. The new rates came into effect on 6 November ([CNB Board decision, 5 November 2026](https://www.cnb.cz/en/monetary-policy/bank-board-decisions/CNB-Board-decisions-1793865600000/)).

## The vote

Four members voted for the increase and three voted to leave rates unchanged, according to the Bank Board's statement ([statement](https://www.cnb.cz/en/monetary-policy/bank-board-decisions/CNB-Board-decisions-1793865600000/?tab=statement)). The Board had previously raised rates in June.

## Reasons given

- Inflation has been close to the 2% target since January 2024, but the CNB's new forecast sees it rising temporarily in late 2026 and early 2027.
- Core inflation remains elevated, with prices rising above all in services.
- The Board said it was "not responding mechanically to the higher energy prices", but to the risk of their second-round effects.
- The labour market remains tight and wages are rising at a rapid pace; credit growth and property price growth are elevated.

## The forecast

The CNB's Monetary Department expects inflation to average 2.1% this year and to accelerate next year. Its forecast for Czech GDP growth this year was lowered from 2.2% to 1.7%, with growth of 2.5% expected next year.

## Risks

The Board assessed the risks to the outlook as inflationary overall, citing persistent core inflation, faster growth in the money supply, a possible rise in the public finance deficit and rapid wage growth. It said it will closely monitor the economic effects of the conflict in the Middle East. Weak performance in some euro area economies and a possible global correction in asset prices could work the other way.

## What comes next

Minutes of the meeting are due on 13 November 2026. Other European central banks this month: [the Bank of England raised Bank Rate to 4%](/news/bank-of-england-raises-bank-rate-to-4-percent-november-2026/), [the Riksbank raised its rate to 2%](/news/riksbank-raises-policy-rate-to-2-percent-november-2026/) and [Norges Bank held at 4.5%](/news/norges-bank-holds-policy-rate-4-5-percent-november-2026/). The ECB kept its deposit rate at 2.50% on 29 October ([ECB decision](/news/ecb-keeps-deposit-rate-2-50-percent-october-2026/)).

## Sources

- [Czech National Bank: Bank Board decision, 5 November 2026](https://www.cnb.cz/en/monetary-policy/bank-board-decisions/CNB-Board-decisions-1793865600000/)
- [Czech National Bank: Statement of the Bank Board for the press conference, 5 November 2026](https://www.cnb.cz/en/monetary-policy/bank-board-decisions/CNB-Board-decisions-1793865600000/?tab=statement)

## Common questions

### What did the Czech National Bank decide on 5 November 2026?

It raised the two-week repo rate by 0.25 percentage point to 4.00%, the discount rate to 3.00% and the Lombard rate to 5.00%, effective 6 November 2026.

### How did the CNB Bank Board vote?

Four members voted for the increase and three voted to leave rates unchanged.

### What does the CNB forecast for inflation?

Its new forecast has inflation averaging 2.1% in 2026 and accelerating in 2027, with a temporary rise in late 2026 and early 2027.

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