April 24, 2018 / 10:01 PM / in a year

Czech central banker: rates may rise before year-end -HN paper

PRAGUE, April 25 (Reuters) - The Czech central bank will likely deliver one more interest rate hike this year following three increases since last August but no action is needed just yet, central bank board member Toms Nidetzky told the online version of daily Hospodarske Noviny.

“From the inflation point of view, it is not necessary to send a signal now that we will raise rates,” Nidetzky was quoted as saying in an interview.

“I expect a more thorough debate about increasing interest rates only sometime towards the end of the year. But I think that, based on the current development of the economy, we will do one more hike this year.”

The central bank’s current forecast predicts another increase in the repo rate, now at 0.75 percent, around the end of 2018 or start of 2019.

Czech inflation has slowed, and while the crown currency has firmed less than the bank had expected, it said at its last monetary policy meeting on March 29 that it assessed risks to the forecast as being slightly anti-inflationary.

Fellow central bank board member Vojtech Benda told Reuters on Tuesday he saw the risks being tilted higher but he also saw no need to raise rates in the short-term. (Reporting by Jan Lopatka Editing by Gareth Jones)

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