Czech Nov rate hike pre-emptive move-cbank minutes

07.12.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

A quarter point Czech interest rate rise in November was a pre-emptive strike against possible increase in inflation expectations, minutes from...

...the Nov. 29 meeting showed on Friday.

Policymakers bumped up the main two-week repo rate to 3.50 percent , bringing it to its highest level in nearly 5-1/2-years. Five policy board members voted for the hike, while the remaining two wanted no change.

"Some of the board members expressed concerns that the persisting tightness in the labour market may feed through to wage bargaining, which, in turn, might stimulate secondary inflation pressures and foster a slower fall in inflation in 2008.

"Some of the board members inferred from this that it was necessary to respond pre-emptively to the risk of rising inflation expectations," said minutes to that meeting.

(For full TEXT of meeting minutes, double click on [ID:nL07499522])

(Reporting by Marek Petrus, editing by Mike Peacock)

Keywords: CZECH CENTRALBANK/

[PRAGUE/Reuters/Finance.cz]

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Články ze sekce: Zpravodajství ČTK