Czech National Bank raises its rate to 4%, second hike this year
The Czech National Bank raised its main rate by 0.25 point to 4% on November 5. The new rates apply from November 6.
Event: November 5, 2026
Primary source: November 5, 2026
Published here: November 5, 2026 at 01:33 PM UTC
Read: 2 min
What happened
The Czech National Bank (CNB) Bank Board raised its two-week repo rate (2W repo) by 0.25 point to 4.00% on November 5. The discount rate rose to 3.00% and the Lombard rate to 5.00%. The new rates apply from November 6.
Why it matters to you
The CNB rate sets the cost of loans and deposits in koruna. In a Bloomberg survey, all but one economist expected a hike to 4%. It is the second hike of 2026. The Bank of England also raised its rate to 4% the same day.
What to check and watch
The reasons come from Governor Aleš Michl's press conference and the CNB forecast. Watch the koruna. This is an overview, not financial advice.
Where it’s happening
LIVEDrag to spin. Green dots: the exchange is trading right now (regular hours, holidays not counted). Shadow: where it is night now. Borders: Natural Earth, quakes: USGS. Layer idea: God’s Eye View (MIT).
What happened. On November 5 the Czech National Bank Bank Board raised the two-week repo rate by 0.25 point to 4.00%. This is the CNB's main rate. The discount rate rose by the same amount to 3.00%, and the Lombard rate to 5.00%. The new levels apply from November 6, 2026.
What was expected. Bloomberg reported in the morning that all but one economist in its survey expected a hike to 4%. It called this the second hike of the year and linked it to strong domestic demand and higher energy prices.
What else we know. The CNB press release gives only the numbers. Governor Aleš Michl explains the reasons at a press conference at 3 pm Prague time. The bank also publishes a monetary policy report section with its outlook.
Why it matters. Rates are rising again in Europe: the Riksbank raised to 2% on November 4, the Bank of England to 4% on November 5, and now the Czech Republic. Czech floating-rate loans get more expensive, and savings may pay a bit more. This is our view.
What we don't know. Whether more hikes follow. How the koruna reacts. What inflation forecast the CNB gives.
Confirmed facts
- On November 5, 2026 the CNB Bank Board raised the 2W repo rate by 0.25 point to 4.00%.[1]
- The discount rate rose to 3.00% and the Lombard rate to 5.00%.[1]
- The new rates apply from November 6, 2026.[1]
- Governor Aleš Michl's press conference was set for 3 pm Prague time.[1]
- In a Bloomberg survey, all but one economist expected a hike to 4%; it is the second hike of 2026.[2]
Implications
- ConfirmedThe Czech main rate is now 4.00%.
- Our readingFloating-rate koruna loans are likely to get more expensive. This is our view.
Still unknown
- Whether more hikes follow in 2027
- How the koruna reacts
- What inflation forecast the CNB gives
Who it affects
Czech Republic, Europe. Anyone with a loan or savings in koruna, and anyone who follows European interest rates
Sources
- Czech National Bank: CNB increases interest rates November 5, 2026 · official
- Bloomberg: Czechs Set for Second Rate Hike This Year as Price Risks Persist November 5, 2026 · media
Cover: Freekonomist graphic, a symbolic image, not a photo of the event. This is a news explainer, not financial advice.
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