The Czech National Bank raised the key interest rate (2T repo) by 0.25% according to analysts expectation. The impact on interest rates on mortgages can be expected very soon.
Third rate increases over the last 7 months
After August and November rallies, the Board of Czech National Bank approached a further increase of interest rates on 1 February 2018. This step has been expected since December last year, so it is more a confirmation of earlier forecasts than a surprise for the market.
Banks are increasing interest rates significantly
Some banks have been expecting this step, and have changed their interest rates as early as February 1, 2018. For others, the price is likely to follow in most days or weeks.
Two more times this year
According to forecasts, the Czech National Bank could raise interest rates by a similar value two more times this year. The most likely one is to expect a further increase in the spring, e.g. in May and then in autumn, about October.
However, the Czech banks offer still very friendly mortgage conditions and also for the foreign citizens!