Statutory Default Interest Rate Rise in the Czech Republic
The Czech National Bank has increased the two-week repo rate from 2% to 2.25% with effect as of 7th February 2020. For commercial relationships governed by Czech law it means an increase in the statutory default interest rate from 10% to 10.25% per annum in relation to debts which will become overdue on or after 1st July 2020 if the central bank does not intervene again by then. The last increase in the statutory default interest rate happened on 3rd May 2019. While the Czech National Bank modified the two-week repo rate five times in 2018, there was only one change in 2019.