RPT-HIGHLIGHTS-Czech central bank monthly news conference

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PRAGUE, March 29 (Reuters) - The following are selected comments by Czech central bank (CNB) Governor Zdenek Tuma at the bank's monthly news conference on Thursday following a decision to hold interest rates steady for the sixth month running.

For a news report on the decision, click on [ID:nL29598110].

ON ASSESSMENT OF RISKS TO CPI OUTLOOK FOR UP TO 18 MONTHS:

"There was an agreement (on the board) that risks are balanced and that we lack significant stimuli to move rates in either direction.

"Today (the meeting) was very consensual."

ON OUTLOOK FOR INTEREST RATES:

"The forecast (due for quarterly revision next month) still assumes that interest rates will head rather higher in the medium-term horizon.

"In my opinion, personal communication of some of my colleagues -- meaning about their idea that a rate cut cannot be ruled out -- concerned rather the short-term horizon ... Obviously risks may evolve in any way.

"Stability is expected in the next few months... but then, in the horizon of a few months, the forecast assumes an interest rate rise," Tuma said, adding this might mean rates could hold steady for one, two, three, four or even more months.

ON IMPACT OF RECENTLY ANNOUNCED CUT IN INFLATION TARGET TO 2 PERCENT BEGINNING IN 2010 FROM CURRENT 3 PERCENT:

"It cannot be ruled out that the announcement of a target change from 2010 is already having an effect ... because our research shows that inflation expectations have fallen, albeit by one tenth of a percentage point, to levels around 2.5 percent. And it is very well likely that over time, they will converge further to the 2010 target level.

"I do not want to foresee what implication (for policy the reduced target) will have, because there is a number of options how the new target might be reflected by the new forecast, which is still being worked on."

ON WHETHER REDUCED TARGET COULD MAKE POLICYMAKERS LESS WILLING TO TOLERATE RISE IN INFLATION ABOVE 3 PERCENT:

"We have agreed that in connection with the preparations of the new forecast we have to agree with our expert staff how to account for the new target. And this also will get reflected in our views about how we would like to achieve it.

"So I cannot present the opinion of the board because such an opinion is not available."

- REPORT ON INFLATION TARGET REDUCTION: [ID:nL08474011]

- FACTBOX ON SWITCH TO NEW INFLATION TARGET: [ID:nL08636993]