Prague - The Czech central bank Thursday slashed its key interest rate by 75 points in seeking to fight a slowdown in one of eastern Europe's leading economies.

The cut to 2.75 per cent from 3.5 per cent was deeper than analysts had expected and left Czech Republic with the lowest rates in the 27-nation European Union.

The Czech National Bank's decision came hours before the European Central Bank cut the lead rate by 50 points to 3.25 per cent for nations using the euro.

Czech Republic has not joined the eurozone. Its politicians say monetary independence and the strong koruna currency have served the country well during the global financial crisis. (dpa)