Czech cbank keeps rates on hold as widely expected

PRAGUE, Oct 26 (Reuters) - The Czech central bank (CNB) kept its benchmark interest rate steady on Thursday, matching market expectations that it will pause in monetary tightening after a quarter of a percentage point hike in credit costs last month.

The six policymakers present at the monthly policy meeting voted to hold the main policy rate at 2.50 percent <CZCBIR=ECI>, the lowest level in the European Union after Sweden raised its key rate by 25 basis points to 2.75 percent earlier in the day.

The CNB called a news conference for 3 p.m. (1300 GMT), half an hour earlier than originally scheduled, where a quarterly update of the 12-18-month outlook for economic growth and inflation is also due for release.

Financial markets expect the CNB to continue tightening policy over the coming quarters to keep inflation at bay amid robust manufacturing activity and a revival in consumer spending. ((Reporting by Marek Petrus; Editing by Alan Crosby; 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