Czech c.banker eyes slight rate hike in '08 -paper

...was quoted as saying in an interview published on Thursday.

Singer told the business daily Hospodarske Noviny that the surge in inflation forecast for early next year would be temporary and that price growth will decline later in the year.

"We are expecting one year of significant price growth ... After that price stability will return to where we were in previous years," Singer was quoted as saying.

"Now will come a rise in prices, which will slightly tame real consumption growth. We will raise rates a little bit into that -- now I do not think we will do that tomorrow or after tomorrow. The economy will cool a bit. A little bit of cooling down is actually desirable," he added.

Soaring food prices boosted annual inflation to a six-year high of 5 percent in November, well above the 4 percent upper edge of the CNB's comfort zone around its 3 percent target. Economists see inflation jumping above 6 percent in early 2008.

At this year's last meeting on Dec. 19, CNB policymakers agreed to hold the main two-week policy repo rate at 3.50 percent, its highest level in 5-1/2 years and 50 basis points below the euro zone equivalent.

Most analysts expect a 25 basis point rate increase at the next scheduled rate meeting on Feb. 7 when the policy board will also have a quarterly update of its inflation projections. (Reporting by Marek Petrus; editing by Stephen Nisbet)

Keywords: CZECH CENTRALBANKER/

[PRAGUE/Reuters/Finance.cz]