Czech c.banker warns against excessive wage growth

16.10.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

The Czech central bank (CNB) is concerned about future inflation pressures and warned trade union leaders against demanding excessive wage rises...

...for 2008, CNB Governor Zdenek Tuma said on Tuesday.

After meeting trade union leaders for annual talks on the economic outlook, Tuma told a news conference he and his fellow policymakers had discouraged union leaders from indexing wages to headline inflation which is seen rising in early 2008.

The CNB raised interest rates to a five-year high of 3.25 percent in August, but a strong crown and uncertainty fed by the global credit crunch have led policymakers to signal a diminishing scope for more rate hikes.

[PRAGUE/Reuters/Finance.cz]

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