HIGHLIGHTS-Czech c.bank chief's monthly news conference

...board voted for a 25 basis point rise in the main repo rate to 3.25 percent on Thursday.

For main news report, double click on [ID:nL30781459].

ON RATE DECISION:

"Our view of the Czech economy has not fundamentally changed ... Our forecast (unveiled in July) remains in place, and this forecast is consistent with a rise in interest rates.

"This was also subject to debate last time (at July's meeting), that we should not go by (hiking by) 50 basis points, even though we would find fundamental arguments for such a move, there was the argument to spread (policy tightening) out into several steps.

"In my view (a hike) was not such a surprise. I have to admit that it is not quite clear to me what we would have waited for (in tightening policy further).

"Compared with the previous month, some of the uncertainties have probably risen. The future picture has become blurred to some, but this does not mean that we harbour any doubts about the direction the Czech economy is heading at present."

ON OUTLOOK FOR POLICY:

"The timing (of policy changes) is always an open question ... As far as the timing and size (of future interest rate hikes) are concerned, this depends ... on decisions of the bank board and the assessment of the developments of risks (to inflation)."

[PRAGUE/Reuters/Finance.cz]