Czech central bank hikes rates to two-decade high

A woman walks past a Russian shop on March 29, 2022 in Karlovy Vary, Czech Republic. - (Photo by Michal Cizek / AFP)

LONDON: The Czech central bank has hiked interest rates to a two-decade high and signalled it will raise them further, as soaring inflation overshadows risks to the economy from the war in Ukraine.

Policy makers raised the key rate by a half-point to 5% on Thursday, bringing the cumulative increases to 475 basis points (bps) since June.