Another increase in the CNB interest rate, currently to 2.75% (No. 1038)

With effect from November 5, 2021, the Czech National Bank (CNB) raised the basic interest rate (the so-called two-week repo rate or the 2W repo rate) to 2.75%. This increase from the 1.5% rate, which has been in force since October 1, 2021, is the steepest since 1997 and is a second consecutive increase in a fairly short time.

The CNB basic interest rate also applies to taxes, when the amount of this rate forms the basis for determining interests. For example, interest on arrears is equal annually to the CNB repo rate valid for the first day of the calendar half-year in which the arrears last, increased by 8 percentage points. If there is no further change in the rate, the delay in the payment of taxes will be sanctioned at the rate of 10.75% p.a. from January 1, 2022.

A summary report of the repo rate development is available on the KODAP website.

publikováno 18.11.2021