Czech Central Bank Reduces Key Rate to Record 1.5%

The Czech central bank cut the benchmark interest rate to a record low of 1.5 percent, signaling the bank expects a sharper economic contraction than it forecast will damp inflation.

The Prague-based Ceska Narodni Banka lowered the two-week repurchase rate a quarter-point from 1.75 percent. It was the fifth reduction since June 2008, when the rate was 3.75 percent. In a Bloomberg survey, 12 economists expected no change, while 8 forecast the move.  Read more about the Czech central bank…