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EXPLAINED: How the Czech National Bank‘s rate change could affect you

How a coming rate hike influences the economy and your wallet, and why it’s happening.

William Nattrass

Written by William Nattrass Published on 04.11.2026 09:11:00 (updated on 04.11.2026) Reading time: 5 minutes

Business & Money
Czech National Bank, Shutterstock by Diego Grandi
Czech National Bank, Shutterstock by Diego Grandi
  • What is the base rate?
  • How has it changed in Czechia?
  • What does changing the base rate actually do?
  • What if I can’t afford increased interest rates?
  • How does the base rate affect the wider economy?

The Czech National Bank (ČNB) is expected to increase its base interest rate to 4 percent tomorrow. What will the increase of 0.25 percent expected by analysts mean for the economy and everyday life in Czechia?

The Central Bank base interest rate is just one number, but it has far-reaching consequences for the economy. Read on to find out how.

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Shutterstock by JeP

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What is the base rate?

Central banks across the world set a so-called “base rate” as a way of influencing economic activity. The interest rate set by the central bank is important in determining the rates charged by commercial banks for any type of loan, which in turn affects the cost of financing throughout the economy.

The ČNB’s key rate is the two-week repo rate, which determines the cost at which commercial banks can access cash from the ČNB.

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