Czech c.bank's Holman opposes rate hike now-agency

...Robert Holman was quoted as saying on Friday.

In an interview with the Bloomberg news agency, Holman opposed the growing view among the seven members of the CNB's rate-setting board that accelerating household spending and rising wages warrant additional tightening in the near-term.

"There is strong, non-inflationary growth," Holman, regarded by markets as the most dovish CNB policymaker, was quoted as saying. "In general, I would be most happy if rates were not changed often. I am not a fan of fine-tuning. It's better to reconcile with certain fluctuations of inflation."

He contradicted fellow policymaker Mojmir Hampl who told Reuters in an interview on Thursday that the CNB's board had "a clear message" it will continue raising interest rates this year to combat broad-based inflation pressures.

The board next meets on interest rates on Aug. 30, after July's quarter of a percentage point hike in the policy rate to 3 percent , its highest in nearly five years.

Analysts say the doves now appear to be in a minority, and most analysts expect a further 25 basis point interest rate hike by September at the latest.

Holman said the only reason to raise the Czech rate further would be if the European Central Bank lifted its own 4 percent main rate, voicing concern a deepening of the already wide-open yield discount would cause the crown to fall and fuel inflation.

"On the basis of the July forecast, I saw a need to raise rates by a quarter of a percentage point at that moment, but I cannot say I thought there was some more room and that we raised too little," he said.

"If the ECB would be raising rates, then we couldn't afford not to react," he was quoted as saying.

[PRAGUE/Reuters/Finance.cz]