HIGHLIGHTS-Czechs c.bank Governor's monthly news conference

...decision to leave interest rates unchanged for a second consecutive month.

CNB rate-setters kept the main two-week policy repo rate at a five-year high of 3.25 percent, after 150 basis points in increases between October 2005 and August 2007 aimed at containing price pressures in the booming economy.

For the main news report, double click on [ID:nL25710600].

-- Latest comments

ON THURSDAY'S POLICY DECISION:

"The opinion that prevailed (reflected) the development of monetary policy inflation, secondly the faith in relatively good credibility and well-anchored inflation expectations, and thirdly perhaps also the exchange rate. These three factors were probably the most important in our decision to leave interest rates unchanged."

-- Previous comments

ON OUTLOOK FOR INTEREST RATES:

"As far as the timing and size of an interest rate increase is concerned, we are once again not being explicit. It will depend on the evolution of risks (to the forecast).

"(A hike) may happen next month or it may come at the beginning of next year, I am not able to foresee that."

ON INTEREST-RATE PATH EMBEDDED INTO UPDATED INFLATION AND ECONOMIC GROWTH FORECASTS FOR 12-18 MONTHS AHEAD:

"The macroeconomic prediction, and its assumptions, are consistent with a rise in nominal interest rates."

ON RISKS TO INFLATION PROJECTIONS:

"The risks to the baseline scenario of the forecast are balanced."

[PRAGUE/Reuters/Finance.cz]