Czech c.banker says higher int.rates needed-paper

10.12.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

Higher interest rates are needed to counter a projected rise in Czech inflation above 5 percent next year, central bank Vice-Governor Ludek...

...Niedermayer was quoted on Monday as saying in a newspaper interview.

However, he also told the daily Hospodarske Noviny that he could not rule out an interest rate cut "relatively soon" provided that inflation pressures fade away quickly.

It was not clear whether Niedermayer considered last month's 25 basis point hike in the main two-week repo rate to 3.50 percent sufficient to prevent rising consumer prices from boosting inflation and wage expectations.

(Reporting by Marek Petrus)

Keywords: CZECH ECONOMY/CENTRALBANKER

[PRAGUE/Reuters/Finance.cz]

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