PRAGUE (AP) — The Czech Republic's central bank has cut its key interest rate by a quarter percentage point to 0.25 percent — a record low since the country was formed in 1993 after the breakup of Czechoslovakia.

The central bank had last cut the rate in June, to 0.5 percent, the previous record low.

Thursday's cut, aimed at helping the struggling export-oriented economy, was expected.

The Czech economy has been in recession since it shrank by 0.2 percent in the second quarter of the year.

The central bank forecasts the economy to contract by 0.9 percent this year before rebounding by 0.8 percent in 2013.

The Czech Republic does not use the common European currency but eurozone countries, including Germany, are its major trading partners.