Czech c.bank starts meeting, rates seen on hold

PRAGUE, Oct 26 (Reuters) - The Czech central bank (CNB) began their monthly meeting on interest rates on Thursday amid almost universal market expectations that they will pause in monetary tightening after quarter of a percentage point hike last month.

Only two of 24 economists in a Reuters poll last week predicted a 25 basis point increase on Thursday. The rest saw the main policy rate remaining at 2.50 percent <CZCBIR=ECI>, the lowest level in the European Union.

An interest rate announcement is expected some time after 12 p.m. (1000 GMT).

The CNB called a news conference for 3:30 p.m. (1330 GMT).

Besides interest rates, policymakers are also expected to approve and release a quarterly update to the 12 to 18-month outlook for economic growth and inflation, which drives their policy decisions.

The meeting will be attended by six of the CNB's seven policymakers, meaning Governor Zdenek Tuma will have the casting vote if the board is evenly split.

A slim majority of 13 analysts from the 22 predicting no change in October saw the CNB tightening again in November or December to keep inflation at bay amid robust manufacturing activity and a revival in consumer spending.

((For TABLE detailing analysts' interest rate forecasts, double click on <CZ/ECON19>))

((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 CBANK