PRAGUE -- The Czech Republic’s central bank has significantly increased its key interest rate by three quarters of a point to 1.50%, in an effort to tame soaring inflation as the economy rebounds from the coronavirus pandemic.

       Thursday’s move was the biggest single hike of the rate since 1997 and the third increase in as many months.

       Analysts had mostly predicted a half-point increase. The central bank considers high inflation as a major threat.

       Inflation jumped to 4.1% in August, well above the bank’s 2% target. The Czech economy registered a record 8.1% year-on-year growth in the second quarter, according to the country's Statistics Office.

       The last time the bank changed its rates was in August when it increased the key interest rate by a quarter-point to 0.75%, to tackle inflation.