Repo sazba je jedna ze tří sazeb, které stanoví Česká národní banka. Mnohdy ji označujeme jako základní sazbu, mezi další sazby určované ČNB patří diskontní sazba a lombardní sazba.
What is the repo rate?
The repo rate is used in financial operations in the open market, it is used as the maximum interest rate at the moment when commercial banks return the money they have borrowed to the CNB. It is changed according to a decision of the CNB Bank Board, which meets to set it according to a pre-determined schedule, usually eight times a year. You may have heard of it as the CNB’s two-week repo rate.
What is the repo rate for?
The repo rate is one of the CNB’s monetary policy tools used to steer the inflation rate. It determines the interest rate of repo operations, i.e. operations in which the bank sells securities with a commitment to buy them back at a certain time. As a result, the CNB has free money from commercial banks and thus reduces the amount of money in circulation. The basic maturity period is 14 days, after which the CNB buys the securities back and increases the price by the agreed interest.
Our tip: Are you interested in the current repo rate? The CNB publishes it on its website.