Czech c.bank surprisingly hikes rates by 25 bps

27.09.2006 | , Reuters
Zpravodajství ČTK


perex-img Zdroj: Finance.cz

PRAGUE, Sept 27 (Reuters) - The Czech central bank surprisingly raised its key policy rate by 25 basis points on Wednesday, defying most analysts who had expected policymakers to hold off on a hike until next month.

The decision, however, was anticipated by the money market which had priced in a tightening this week after surprise hikes in Hungary and Slovakia, and amid a worsening Czech fiscal outlok, growing demand and somewhat weaker crown currency.

The increase puts the 2-week repo rate at 2.50 percent, 50 basis points below the key euro zone rate.

The bank did not comment on the move, but called a news conference for 3.30 p.m. (1330 GMT) to elaborate. ((Reporting by Jan Lopatka, editing by Alan Crosby; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

Keywords: ECONOMY CZECH RATES

Autor článku

 

Články ze sekce: Zpravodajství ČTK