HIGHLIGHTS-Czech central bank news conference

PRAGUE, Sept 27 (Reuters) - The following are selected comments from the Czech central bank's (CNB) news conference following a monthly policy meeting where the bank raised interest rates by 25 basis points.

CNB GOVERNOR ZDENEK TUMA:

ON RATE DECISION:

"There were no big surprises in the discussion, the development was more or less consistent with our expectations and our forecast."

"The opinion prevailed that while arguments can always exist for both sides...the proper reaction in the given situation is an interest rate increase."

ON FISCAL POLICY:

"Given how the situation is developing, mainly the political situation, it will be very difficult to achieve sufficient consolidation in the area of public finance...and adopt such measures that will either compensate the rise in social spending or correct directly those measures which have been approved."

"We are perceiving a growing risk that budgets in the following years may be negatively affected."

"On the other hand it is necessary to admit that from the point of view of what is key for us, the impact on inflation and certain impact on monetary policy, we do not see any big threats. It cannot be said that there would be an immediate risk which we would perceive as significantly pro-inflationary." ((Reporting by Jan Lopatka, Petrs Vodstrcilova, editing by Mike Peacock; prague.newsroom@reuters.com; Reuters Messaging: jan.lopatka.reuters.com@reuters.net; +420-224 190 474))

Keywords: ECONOMY CZECH RATES