HIGLIGHTS-Czech cbanker Tuma at monthly news conference

...to raise key interest rates by 25 basis points on Thursday.

For the main news report, double click on [ID:nL29206268].

-- Most recent comments

ON THURSDAY'S DECISION:

"The expectation that this decision will not be easy was a correct one ... There were very strong arguments for both leaving (rates) unchanged and raising them.

"What led us to this (decision)? I point out the current forecast... This means a sharp increase in inflation."

ON ASSESSMENT OF RISKS TO INFLATION OUTLOOK:

"Overall, versus the forecast, risks were evaluated as slightly anti-inflationary, maybe I could add as slightly, slightly anti-inflationary. We were debating whether we should assess them as neutral or slightly anti-inflationary.

"The assessment is difficult because on one hand, headline inflation belongs to pro-inflationary factors which leads the risks quite a lot to the upside. On the other hand there are a number of factors which push the risks to the opposite direction."

-- Previous comments

ON NEXT MOVE IN INTEREST RATES:

"I am adding my own interpretation here, but I am of the opinion that it is difficult to foresee in which direction the next move will go. The risks (to the inflation outlook) are skewed in both directions.

"It can happen that we will be weighing a further rate increase at one of the upcoming meeting, or rates may stay at the current level for some time ... or I can imagine that the next move (in rates) may even be downward."

Tuma said one of the factors which could make the board consider cutting rates in the coming months could be the crown if it stays firm or strengthens further from current record highs. (Reporting by Marek Petrus and Petra Vodstrcilova; Editing by Alan Crosby)

Keywords: CZECH RATES/HIGHLIGHTS

[PRAGUE/Reuters/Finance.cz]