Czech cbank vice-gov says rate hike may be delayed

PRAGUE, Nov 10 (Reuters) - The Czech central bank (CNB) may raise interest rates later than envisaged by its October prediction in light of the crown's firming to record levels this month, CNB Vice-Governor Miroslav Singer told Reuters.

The CNB's October forecast assumed a further gradual rise in interest rates after 75 basis points worth of tightening over the past year to prevent inflation from exceeding the 4 percent upper boundary of its rolling target next year.

But the crown's nearly 1 percent rally against the euro so far this month wrong-footed the central bank's expectations of exchange rate stability, leading investors to scale back bets on a further interest rate increase before the year-end.

"An interest rate increase may be delayed versus our projected trajectory," Singer told Reuters in a brief interview. He was the first CNB policymaker to speak after the crown scaled an all-time high of 27.875 per euro <EURCZK=> on Monday.

"There is the exchange rate (development), which I, however, do not want to overestimate. Also the (latest) data look relatively favourable," Singer said after speaking at a seminar on euro adoption late on Thursday.

"Obviously we have yet to weigh (all these factors) and analyse them," he added.

Data released earlier this week showed a sharper than expected fall in consumer price growth to a near 1-1/2-year low and an unexpected slowdown in manufacturing output, suggesting economic growth is slowing from its first-quarter peak.

October inflation eased to 1.3 percent, undershooting the CNB's forecast by 0.2-0.3 percentage points and falling through the bottom of its target, which is to keep price growth within one percentage point of a 3 percent mid-point.

A firming currency tends to keeps a lid on import prices in the small and very open Czech economy, helping offset budding pressure on prices from robust economic growth which has been increasingly propelled by consumer spending.

((Reporting by Marek Petrus; editing by Ruth Pitchford; Reuters Messaging: rm://marek.petrus.reuters.com@reuters.net; e-mail: prague.newsroom@reuters.com or marek.petrus@reuters.com; Tel: +420 224 190 477))

Keywords: ECONOMY CZECH RATES