Czech c.bank ups rates by 25 bps, as expected

...them to a more than 4-year high.

Policymakers raised the main two-week repo rate by 25 basis points to 2.75 percent , resuming a tightening of policy following rate increases totalling 75 basis points between October 2005 and September 2006.

Eighteen of the 20 central bank watchers polled by Reuters last week had predicted a quarter-point rate hike to tame inflation, which picked up to a 7-month high of 2.5 percent in April to near the CNB's 3 percent target mid-point. [CNB/INT]

The CNB called a news conference for 3:30 p.m. (1330 GMT) to elaborate on the decision.

It also raised the discount and Lombard rates by 25 basis points each to 1.75 percent and 3.75 percent, respectively. All rate changes are effective Friday.

[PRAGUE/Reuters/Finance.cz]