Czech c.bank's Rezabek eyes rate hike delay-agency

...member Pavel Rezabek was quoted as saying in a Bloomberg interview.

"I would prefer a cautious approach (to rate increases)," Rezabek was quoted as saying in the interview conducted on Tuesday. The benchmark two-week repo rate may stay at 3.25 percent, the lowest in the European Union, for several months, he said.

Markets believe Rezabek belongs to the dovish wing of the seven-member CNB policy board. His comments contrasted with the view of hawk Mojmir Hampl, who told Reuters in an interview that interest rates have not yet reached a plateau [ID:nL1433320].

Rezabek was concerned an additional rate hike could spur further gains in the already record-strong crown currency and dent economic growth at a time of uncertainty about the outlook for both the U.S. and global economy, according to the report.

The impact of raising rates "could be huge and we could then have a hard time balancing it with monetary policy," Rezabek was quoted as saying. "It's not about raising or not raising rates. The question is when the situation will ripen so we can be sure we will not cause imbalances with this step."

Rezabek said the firm crown would certainly have a bearing on how he is going to vote at the next board meeting on Nov. 30. (Reporting by Marek Petrus; Editing by Ruth Pitchford)

Keywords: CZECH CENTRALBANKER/REZABEK

[PRAGUE/Reuters/Finance.cz]