Prague This Week: the ČNB raises its rate, and a new law for loans

The Czech National Bank raised its main rate this week, and the President signed laws that reach people who rent and buy here: one for loans and mortgages, one for foreigners' registration and proof of housing. In Prague, the new City Assembly took its oaths and adjourned to 19 November, and trams through Karlín stop for the weekend.

The ČNB raises its rate to 4.00%

On 5 November the Czech National Bank's board raised the two-week repo rate by 0.25 percentage points to 4.00%, from 6 November. A fixed-rate mortgage doesn't change until its fixation ends: the rise reaches you through the rates banks offer when you refix or take a new loan. It doesn't change your rent, but if the rate is still 4.00% on 1 January, default interest on late payments, such as a late deposit refund, goes up from January. Read the story

A new law for mortgages and loans from February 2027

The President signed the new consumer credit law on 4 November. From 1 February 2027, if your bank's letter with a new mortgage rate comes late, you pay the ČNB's repo rate until three months after it; credit checks get new limits, buy now pay later comes under the rules, and consumer loans other than mortgages get a price cap. Read more

The new Foreigners Act is signed

The President signed the new Foreigners Act on 4 November. It takes effect on 1 January 2029: EU citizens staying longer than 90 days will have to register from 2030, and any proof of housing, a lease included, will have to give the flat's entry in the land registry. Read more

The building act rewrite: what changes for neighbours and buyers

Neighbours get 10 days to object, small blocks of flats become "simple buildings", and permits move to new state offices from 2027. The first changes start on the first day of the month after the law is published, which hadn't happened by 5 November. Read more

No trams between Florenc and Palmovka this weekend

From early on Saturday 7 November to early on Monday 9 November, X3 buses (X92 at night) replace the trams through Karlín. Read more

Coming up

• Sat 7 – Mon 9 November: no trams between Florenc and Palmovka
• Thu 19 November: the new City Assembly meets again, and may elect the mayor and council
• Wed 25 November: the ČNB board looks at the mortgage limits
• Thu 17 December: the ČNB's last rate meeting of 2026
• 1 February 2027: the new consumer credit law takes effect

Useful this week

Fixation ending soon? Our guide to refinancing walks through each choice before your bank's letter comes. Open it