FACTBOX-Six policymaking rules by Czech c.banker Hampl

...one of the seven members of the CNB's governing board.

Hampl, who joined the CNB only in last December and has yet to establish a reputation in markets as a hawk or dove, discussed these rules in an interview with Reuters on Thursday.

For a report on the interview, double click on the following code: [ID:nL09633142].

CNB policymakers do not disclose how each of them voted on interest rates, so markets closely scrutinise their public statements for any hints about what their policy preferences are and how they could decide at upcoming meetings.

* ACT AT THE RIGHT TIME: "A 'pre-emptive' move does not mean I decide earlier than necessary, it means I make a move neither too late nor too early."

* MIND THE LAG: "Today's decision can affect your target only tomorrow, so information about today is not important in itself but only if it alters the outlook for the fulfilment of your target tomorrow."

* NEW FORECAST IS KEY: "Policy moves should mostly be decided upon at meetings when I have a new forecast which is four times a year. A decision taken in between the forecasts is complementary to the one taken with the new forecast, it strengthens and confirms it but should not negate it."

* HAVE NEITHER HAWKISH NOR DOVISH BIAS: "Have no bias when you study a new set of data and a new forecast, even though you may be blamed for being inconsistent and voting erratically."

* BE READY TO CHANGE YOUR VIEW: "Come to policy meetings with a clear, strong opinion but at the same time be ready to change it."

* SURPRISES ARE SOMETIMES UNAVOIDABLE: "Making decisions in line with market expectations does not necessarily bring the economy to balance, it is an equivalent to a dog chasing its own tail."

[PRAGUE/Reuters/Finance.cz]