The Czech National Bank published an analysis of how policy-rate changes passed through to household and corporate interest rates between the end of 2023 and June 2026. The two-week repo rate fell from 7% in December 2023 to 3.5% in May 2025 before rising to 3.75% by the end of the review period. Corporate loan and deposit rates adjusted rapidly, while transmission to mortgage rates was slower because of refinancing and refixing cycles. Most koruna-denominated corporate loans are linked to the Prague Interbank Offered Rate plus a credit margin, allowing market-rate changes to feed through almost immediately. Mortgage stocks developed two distinct interest-rate peaks from 2025, reflecting older loans still carrying rates of 2% to 3% and newer or refixed loans generally in the 4% to 5% range. Corporate and household deposit-rate distributions became more closely aligned as the repo rate declined, although the latest data showed rates rising again alongside an upward shift in the yield curve.
Czech National Bank finds rapid rate pass-through to corporate loans and deposits, slower transmission to mortgages
The Czech National Bank found that policy-rate changes passed rapidly into corporate loan and deposit rates but more slowly into mortgage rates. Mortgage stocks now show separate concentrations of older loans at 2% to 3% and newer or refixed loans at 4% to 5%.