UPDATE 1-Czech c.banker highlights split on policy board

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Czech central bank (CNB) policymaker Pavel Rezabek highlighted a split on the CNB's board on Tuesday, saying some members consider sustaining both price stability and economic growth when discussing interest rate rises.

The seven-member board meets on rates on Aug. 30 with analysts uncertain whether its members see inflation pressures strong enough to warrant another rate rise following July's quarter point hike in the policy rate to 3 percent .

"Each (member of the seven-strong policy board) has a different view on the future and has a different opinion on potential inflationary pressures," Rezabek said in an online interview on the Web site of the daily Lidove Noviny.

"Some of us take into account also the second goal of the CNB, which is defined by law -- that is, promoting sustainable economic growth as interest rate rises have a negative impact on demand, and thus also on economic growth."

Rezabek is widely seen as a pragmatic advocate of an accommodative policy stance. He has often spoken in favour of letting inflation both rise and fall within the plus/minus 1 percent tolerance band around the CNB's 3 percent target.

The CNB has projected a rise in inflation above the 4 percent upper margin next year, assuming rates keep rising.

Analysts have said doves on the rate-setting panel now appear to be in minority, and most of them expect a further 25 basis point interest rate hike by September at the latest.

Policymaker Mojmir Hampl said last week the CNB's board had "a clear message" it will continue raising interest rates this year to combat broad-based inflation pressures [ID:nL09633142].

However, dovish board member Robert Holman opposed that view and said also last week the CNB has no reason to rush with an additional rate hike as price pressures stemming from the country's strong economic growth remain muted [nL10690210].

For profiles of CNB policymakers, click on [ID:nL28883806]

[PRAGUE/Reuters/Finance.cz]