FACTBOX-Czech central bankers' recent remarks on policy

...market uncertain whether 
interest rates will remain flat or rise. 
    The bank raised the key repo rate  by 25 basis 
points to 3.0 percent last month and is expected to tighten 
policy further in the near future to rein in price pressures in 
the fast-growing economy. 
    Nine analysts polled by Reuters expect no change at the 
meeting on Thursday, but seven predicted a quarter-point hike. 
For Reuters polls on analysts' interest rate expectations, click 
on [CNB/INT].  
    Following are extracts from recent comments from CNB board 
members. 
==========================COMMENTS============================== 
    
    BOARD MEMBER VLADIMIR TOMSIK, CZECH TELEVISION, AUG 24 
    "There is no specific link of the present developments in 
the mortgage markets in the West with the present development of 
interest rates in the Czech Republic. 
    "There is robust economic growth (in the Czech Republic) and 
we have a new inflation forecast. We set interest rates based on 
domestic conditions.  
    "The present inflation forecast is consistent with a rise in 
interest rates," he said, adding he was speaking in general 
terms and not specifically about the August meeting. 
    STORY: [ID:nL24564257] 
     
    BOARD MEMBER MOJMIR HAMPL, WEEKLY EKONOM, AUG 23: 
    "For a long period of time, the Czech economy lived in an 
environment of stable interest rates. Now this is changing, we 
are in the phase of their gradual rise." 
    STORY: [ID:nL23317811] 
     
    GOVERNOR ZDENEK TUMA, MNSI INTERVIEW, AUG 21: 
    "At this moment I don't see any significant impact on the 
Czech economy on such a scale that monetary policy should 
respond." 
    He said the bank was unlikely to hike rates by 50 basis 
points in August but declined to predict the pace or timing of 
future policy moves. 
    STORY: [ID:nL21723621] 
 
    VICE-GOVERNOR LUDEK NIEDERMAYER, THOMSON FINANCIAL NEWS 
INTERVIEW, AUG 15: 
    "For the stage at which the Czech economy is at now interest 
rates should be higher." 
    "Given that inflation is nearing our target (of 3 pct), the 
appropriate interest rates (would be) significantly higher."  
    STORY: [ID:nL15865234] 
     
    BOARD MEMBER PAVEL REZABEK, DAILY LIDOVE NOVINY ON-LINE 
INTERVIEW, AUG 14: 
    "Each (member of the seven-strong policy board) has a 
different view on the future and has a different opinion on 
potential inflationary pressures. 
    "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."  
    STORY: [ID:nL14380165] 
 
    BOARD MEMBER ROBERT HOLMAN, BLOOMBERG INTERVIEW, AUG 10: 
    "There is strong, non-inflationary growth. 
    "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." 
    STORY: [ID:nL10690210] 
     
    BOARD MEMBER MOJMIR HAMPL, REUTERS INTERVIEW, AUG 9: 
    "If you were to ask me whether I would like to vote for a 
rate rise at the forthcoming meeting, I would answer that I 
would not rule it out. 
    "The current situation is such that we are increasingly tied 
by the straitjacket of inflationary pressures and risks across 
the board. 
    "The CNB's board has sent a message that this (July hike) 
was not the last tightening of monetary policy this year, and I 
think this message is clear." 
    STORY: [ID:nL09633142] 
     
    VICE-GOVERNOR MIROSLAV SINGER, REUTERS, AUG 8: 
    Singer spoke after data showed inflation ebbed to a 
four-month low in July, confounding market expectations of a 
further quickening. 
    "Surprises can always come from either side. 
    "It is being shown that we may be surprised in an opposite 
direction, and I think that it is wise to leave room in monetary 
policy to react to such surprises." 
    STORY: [ID:nL08394069] 
 
============MINUTES FROM THE JULY 26 BOARD MEETING============== 
    "A majority of the board members agreed on the need for 
another interest rate increase if the current (inflation) 
forecast was met." 
    As published immediately after the July 26 meeting, one of 
the seven CNB policymakers voted for a bolder, 50 basis point 
rate rise to 3.25 percent last week. The remaining six agreed on 
the quarter point increase.      
    STORY:     [ID:nL03817639] 
    FULL TEXT: [ID:nL03554277] 
     
=========GOVERNOR ZDENEK TUMA, JULY 26 NEWS CONFERENCE========== 
    "The voting record implies we discussed a 50 basis point 
rise, and relatively thoroughly. 
    "Our inflation forecast is consistent with a rise in 
interest rates over the horizon of one to two years." 
    STORY: [IDnL26800751] 
     
=================JULY INFLATION FORECAST======================== 
    TABLE: [ID:nPRA001408] 
    FORECAST ASSUMPTIONS: [ID:nL03209552] 
     
    (Compiled by Jan Lopatka) 
  
  Keywords: CZECH RATES/  
    

[Reuters/Finance.cz]