INSTANT VIEW 2-Czech Q4 wage growth picks up pace

    PRAGUE, March 7 (Reuters) - The Czech real average gross 
monthly wage rose 4.6 percent year-on-year in October-December, 
accelerating from 3.1 percent in the previous quarter, data 
released on Wednesday showed. 
     
KEY POINTS: 
(y/y change in pct)    Q4/06    Q3/06    2006      2005 
 real change            4.6      3.1      3.9       3.4 
 nominal change         6.2      6.1      6.5       5.4 
 
 (Full table of Q4 data...........................[nPRA001182]) 
  
- Average wage in the fourth quarter stands at 21,592 Czech 
crowns ($1,007). 
- Full-year 2006 average wage at 20,211 crowns. 
- Average seasonally-adjusted nominal gross wage rises 1.6 
percent in the fourth quarter from the previous three months. 
 
COMMENTARY: 
    ALES MICHL, ANALYST, RAIFFEISENBANK, PRAGUE 
    "We consdier the Q4 wage growwth as healthy, it corresponds 
to what the economy can afford. Converted by the exchange rate, 
we have the highest wages in central Europe. 
    "The process of convergence of wages in Europe is 
continuing. In 2000, Czechs took 16 percent of what Austrians 
did. This year it will be 28 percent. 
    "Today's figures do not suggest an overheating in the 
economy. Interest rates will grow dawdlingly. Thanks to growing 
household purchasing power we should expect two interest rate 
hikes in the next 12 months, each by 25 basis points." 
 
MARKET REACTION: 
    Crown stands unchanged at 28.150 to the euro .     
  
BACKGROUND: 
- Jan producer prices figures                    [ID:nL21213928] 
- Jan consumer inflation figures                 [ID:nL14403418] 
- Dec industrial output figures                  [ID:nL14213337] 
- Report on last Czech c.bank rate decision      [ID:nL01449456] 
                                                 [ID:nPRA001176] 
  
LINKS: 
- For further details on fourth-quarter wages and past data, 
Reuters 3000 Xtra users can click on the Czech Statistical 
Bureau's Website: 
    http://www.czso.cz/eng/csu.nsf/kalendar/2004-pmz 
 
- For LIVE Czech economic data releases, click on        
- Instant Views on other Czech data                 [CZ/INSTANT] 
- Overview of Czech macroeconomic indicators            [CZ/ECI] 
 
- Key data releases in central Europe    [CEE-CONVERGENCE-WATCH] 
- For Czech money markets data click on                 
- Czech money guide                                       
- Czech benchmark state bond prices                    
- Czech forward money market rates                       
 
 ((Writing by Jan Lopatka; Editing by Alan Crosby; 
prague.newsroom@reuters.com; Reuters Messaging: 
jan.lopatka.reuters.com@reuters.net; +420 224 190 477)) 
 ($1=21.44 Czech Crown) 
  Keywords: CZECH ECONOMY/WAGES