Czech c.bank holds rates steady as markets expect

PRAGUE, Nov 30 (Reuters) - The Czech central bank (CNB) left interest rates unchanged on Thursday, meeting market expectations that it would keep the costs of money at the lowest level in the European Union after a sharp decline in inflation.

The seven-member policy board voted to hold the key two-week repo rate at 2.50 percent <CZCBIR=ECI>, a record 75 basis points below the benchmark euro zone level, following 75 basis points worth of rate hikes between October 2005 and September 2006.

A news conference is scheduled for 3:30 p.m. (1430 GMT).

All 20 CNB watchers polled by Reuters last week predicted policymakers would extend the pause in monetary tightening until at least January, as a firm crown tames budding price pressures in the booming economy.

((For FACTBOX on central European rate verdicts, double click on [ID:nL23215572]))

((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: CZECH RATES/