HIGHLIGHTS-Czech central bank monthly news conference

...following a decision to raise interest rates for the first time in 8 months.

For a news report on the decision, click on [ID:nL31276683].

ON RATE DECISION

"There are various pros and cons when considering the setting of policy rates. However, in the end, the prevailing opinion was that the risks are slightly pro-inflationary."

"There is no (price) segment which we would call as dramatically pro-inflationary, but when using the forward-looking approach (to policy), we assessed it as the build-up of slightly pro-inflationary risks.

"As far as the more significant (risks) are concerned, it is possible to mention higher April inflation, even though we do not make any dramatic conclusions from one number ... However it is one of the factors which are currently shifting us to a slightly pro-inflationary direction.

"It seems that pressures on wage growth are on the rise ... it can be expected that inflationary pressures will be rising.

"As for the external environment ... there has also been a shift toward stronger economic activity connected with a rise in interest rates.

"The factor which is very volatile ... is a slightly weaker exchange rate of the crown against the euro compared with what we have built into our projection."

ON OUTLOOK FOR FURTHER GRADUAL RATE INCREASES FORESEEN BY APRIL INFLATION FORECAST:

"There was no change to the forecast. We did not discuss it in detail today.

"The forecast which we published last month is valid ... and it says that the forecast is consistent with a gradual rise in interest rates.

"Individual bank board members may take slightly different positions towards it, and may express differing opinions on the timing and the size of a rate move that will be required."

[PRAGUE/Reuters/Finance.cz]