All 7 Czech c.bankers to attend Dec rate meeting

13.12.2007 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

All Czech central bank (CNB) policymakers will attend the monthly interest-rate setting meeting on Dec. 19, the CNB said on Thursday....

...

Investors are unsure whether the CNB will raise borrowing costs again after hiking its main policy rate by 25 basis points to a 5-1/2-year high of 3.50 percent last month in the fourth such move this year.

Both markets and CNB policymakers were caught off guard by a sharp spike in annual consumer price growth to a six-year high of 5 percent in November from 4 percent a month earlier, as food prices soared by the sharpest monthly rate in nearly 15 years.

Rate-setters have been tightening policy despite a record strength in the crown currency on concern that buoyant demand in the central European economy makes it easier for retailers and producers to pass the food and energy price rise onto consumers.

Analysts say annual inflation is likely to top 6 percent early next year, double the central bank's target of 3 percent which includes comfort zone 1 percent either side of that level. (Reporting by Marek Petrus)

Keywords: CZECH CENTRALBANK/

[PRAGUE/Reuters/Finance.cz]

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