June 27, 2018 / 11:08 AM / 9 months ago

Czech central bank plumps for quick hike as crown drifts

PRAGUE, June 27 (Reuters) - The Czech central bank raised its benchmark interest rate by 25 basis points on Wednesday, moving more quickly than it had expected to tighten conditions in a hot economy and compensate for a weakening exchange rate.

Markets had given a nearly 50 percent chance to a rate hike on Wednesday while a slight majority of analysts had expected rate setters to wait until August or later before delivering its fourth rate increase in a tightening cycle started last year.

The bank raised the benchmark two-week repo rate to 1.0 percent.

The crown firmed after the decision and traded up 0.8 percent at 25.705 to the euro. (Reporting by Robert Muller and Jan Lopatka, Writing by Jason Hovet)

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