Czech c.bank board voted 4-3 to hike rates 25 bps

...in favour and three for no change in policy, the CNB said.

The CNB added in a statement after the monthly policy meeting that the board sees the risks to the headline inflation forecast as pro-inflationary.

The 4-3 vote lifted the key two-week repo rate to 3.25 percent, its highest point in five years and narrowing the discount versus the higher euro zone equivalent to 75 basis points.

Financial markets had been as split on what the decision would be as the board was, with nine of the 16 CNB watchers surveyed by Reuters last week predicting no rate change against seven forecasting another quarter-point interest rate rise [CNB/INT].

[PRAGUE/Reuters/Finance.cz]