Czech cbankers see healthy growth,rising inflation

PRAGUE, Nov 3 (Reuters) - The Czech economy should experience healthy growth but inflation will rise over the coming year and a half, central bank (CNB) policymakers agreed at their Oct. 26 meeting, according to the meeting's minutes released on Friday.

The six policymakers present at the meeting voted 5-1 to hold the key repo rate at 2.50 percent, with the lone dissenting member voting for a 25 basis point hike after similar increases in both July and September.

The minutes said that at least one board member saw an upside risk to inflation from the possibility of faster than expected economic growth, fed by accelerating consumer demand, falling unemployment and an ongoing expansion in consumer lending.

But the degree to which the expected hikes in regulated prices and other administrative measures might boost inflation expectations was considered a key uncertainty to the outlook.

"The majority of the board members agreed that the extent of the pass-through of administrative effects to inflation expectations, and the rise in inflation caused by it, constituted a major uncertainty for the forecast," said the minutes. ((For TEXT of central bank meeting minutes, double click on [ID:nL03883315]))

((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 CBANK