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Czech National Bank Interest Rates

Status k 2T repo rate Discount Rate Lombard rate PMR
Nov 2, 2012 0.05 0.05 0.25 2.00
1. 10. 2012 0.25 0.10 0.75 2.00
29. 6. 2012 0.50 0.25 1.50 2.00
May 7, 2010 0.75 0.25 1.75 2.00
17. 12. 2009 1.00 0.25 2.00 2.00
7. 8. 2009 1.25 0.25 2.25 2.00
May 7, 2009 1.50 0.50 2.50 2.00
6. 2. 2009 1.75 0.75 2.75 2.00
17. 12. 2008 2.25 1.25 3.25 2.00
November 7, 2008 2.75 1.75 3.75 2.00
8. 8. 2008 3.50 2.50 4.50 2.00
8. 2. 2008 3.75 2.75 4.75 2.00
November 29, 2007 3.50 2.50 4.50 2.00
30. 8. 2007 3.25 2.25 4.25 2.00
26. 7. 2007 3.00 2.00 4.00 2.00
May 31, 2007 2.75 1.75 3.75 2.00
September 29, 2006 2.50 1.50 3.50 2.00
July 28, 2006 2.25 1.25 3.25 2.00
October 31, 2005 2.00 1.00 3.00 2.00
April 29, 2005 1.75 0.75 2.75 2.00
April 1, 2005 2.00 1.00 3.00 2.00
28. 1. 2005 2.25 1.25 3.25 2.00
27. 8. 2004 2.50 1.50 3.50 2.00
June 25, 2004 2.25 1.25 3.25 2.00
1. 8. 2003 2.00 1.00 3.00 2.00
26. 6. 2003 2.25 1.25 3.25 2.00
31. 1. 2003 2.50 1.50 3.50 2.00
November 1, 2002 2.75 1.75 3.75 2.00
26. 7. 2002 3.00 2.00 4.00 2.00
April 26, 2002 3.75 2.75 4.75 2.00
1. 2. 2002 4.25 3.25 5.25 2.00
January 22, 2002 4.50 3.50 5.50 2.00
November 30, 2001 4.75 3.75 5.75 2.00
27. 7. 2001 5.25 4.25 6.25 2.00

 

Discount Rate
It is actually interest on the discount credit. Banks have the option of depositing their excess liquidity overnight at the Find Loan without collateral, if they so request 15 minutes before the closing date of the accounting day at the Find Loan Clearing Center. The minimum amount is CZK 300 million and further multiples of CZK 100 million. Deposits thus deposited bear interest at a discount rate, which is therefore usually the lower limit for short-term interest rates on the money market. Thus, by this rate, the Find Loan affects the monetary basis indirectly.

There is interest on the loan.

money loan

This type of loan is provided to the central bank by commercial banks against collateral security. Banks can borrow liquidity from the Find Loan overnight through repo operations. However, they must apply at the latest 25 minutes before the closing date of the accounting day at the Find Loan Clearing Center. Minimum volume not determined. The funds under this loan are remunerated at the Lombard rate. The Lombard rate is the upper limit for short-term interest rates on the money market.

2 Week Repo Rate
Repo operations are the Find Loan main monetary instrument, which affects the amount of money in the economy (monetary bases). The Bank withdraws currency from circulation by selling its securities (or treasury bills), and releases it from circulation by purchasing the same securities. In this operation, the two parties undertake to return to the creditor bank a loan that is borrowed by the Find Loan after the maturity date, which is increased by the agreed interest and the creditor bank returns the Find Loan to its securities. The base period of these operations is 14 days. The announced repo rate serves as the maximum limit rate for which banks can be satisfied in repo operations.

Mandatory minimum reserves

money cash

Each bank (but also a building society) and a branch of a foreign bank that has a banking license in the Czech Republic is obliged to hold a predetermined amount of funds in its account at the  Clearing Center (the clearing account). This is called the Mandatory Minimum Reserve . The PMR is set at 2% of the primary liabilities of the bank or building society (mainly deposits from non-bank entities) in the previous period. Banks and building societies must therefore maintain a daily balance on their clearing account, which on average will give at least a set PMR for a given cycle over a period of 14 days. The cycle time is a month.

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