PRAGUE May 4 The development of the crown's
exchange rate will be a key factor for the Czech central bank's
decision-making on interest rate hikes, Governor Jiri Rusnok
said on Thursday.
He said a protracted period of the crown near its former cap
of 27 per euro would mean more need for policy tightening than
if the currency firms.
"If this very slight or almost no firming from the level of
the exchange rate commitment lasts longer, it is logical that...
it will create more need for action, for a move toward
normalisation of monetary conditions...that means gradual
detachment of interest rates from the zero level," Rusnok told
(Reporting by Jan Lopatka and Petra Vodstrcilova)