FACTBOX-Czech central bankers' recent remarks on policy

...was increasingly leaning in favour of raising interest rates rather than cutting them.

For a story on the shift in central bank communication, double click on [ID:nL1993581].

In a Reuters poll among 17 CNB watchers taken after Tuma's comments, all predicted stable rates at the next meeting on April 26 and only two mentioned the probability of a next rate hike in the second quarter. The rest stuck to the forecast of a 25 basis point rate increase no earlier than in July [CNB/INT].

Following are key extracts from recent comments from CNB board members.

=========================COMMENTS==============================

GOVERNOR ZDENEK TUMA, SPEAKING TO REPORTERS, APRIL 18

"When I look at numbers for the past month, not that there have been any dramatic changes, but all confirm a very solid condition of the Czech economy.

"That can be interpreted as shifts in a slightly inflationary direction ... These shifts have been slight but for me this confirms that the next move will be rather upwards."

RELATED STORIES: [ID:nL18469315] [ID:nL198133]

VICE-GOVERNOR MIROSLAV SINGER, QUOTED IN NEWSPAPER, APRIL 14

Reacting to union demands at Skoda Auto carmaker for a pay rise ahead of inflation and national average wage growth, he replied: "Certainly, I do not underestimate it as a signal of strengthening inflationary pressures from demand growth."

BOARD MEMBER ROBERT HOLMAN, REUTERS INTERVIEW, APRIL 13

"Based on the economic information available to me so far, I see no bigger inflation risk ... and no reason for raising interest rates.

"We have not been raising interest rates up until now because our economic environment is low inflationary. It is possible that a longer period of stable interest rates lies ahead of us, but I do not know how long that period will be."

STORY: [ID:nL13548848]

STATEMENT ON MARCH CPI DATA, RELEASED ON APRIL 10

The consumer price index (CPI) net of regulated items and volatile food and fuel prices kept hovering at "very low levels" and signalled price pressures "remained modest", the CNB said.

STORY: [ID:nPRA001241]

MINUTES TO MARCH 29 POLICY MEETING, RELEASED ON APRIL 6

"The board agreed that the forecast risks were balanced and there were no strong arguments for either a rise or a cut in interest rates.

"The rising share of household consumption in GDP was mentioned as a moderate upside risk ... moderate downside risks included above all the observed incomplete pass-through of cost shocks into inflation."

STORY:[ID:nL06735130]

TEXT: [ID:nL06422019]

TUMA, NEWS CONFERENCE AFTER MONTHLY MEETING, MARCH 29

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

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

HIGHLIGHTS: [ID:nL29449470]

STORY: [ID:nL29598110]

SINGER, REUTERS INTERVIEW, MARCH 19

"The next move may go in either direction, because interest rates are more or less well set at the moment."

"So now I see stability, over the longer run I can imagine rates heading rather higher than lower given the cyclicality of economic developments."

STORY: [ID:nL19394999]

HIGHLIGHTS: [ID:nL19461770]

VICE-GOVERNOR LUDEK NIEDERMAYER, INTERVIEW WITH BLOOMBERG NEWS AGENCY, MARCH 16

"Right now, I think interest rates are where they should be," Niedermayer was quoted as saying, adding this "opens the possibility of a rate movement in both directions."

STORY: [ID:nL1621050]

BOARD MEMBER MOJMIR HAMPL, INTERVIEW WITH FINANCIAL WEB PORTAL, MARCH 12

"The pro-inflationary and anti-inflationary risks are relatively balanced and the moment of a potential rise in rates is certainly farther away than it might have seemed in the final months of last year."

STORY: [ID:nL12289539]

Keywords: CZECH CENTRALBANK/