HIGHLIGHTS-Czech central bank news conference

PRAGUE, Sept 27 (Reuters) - Following are selected comments from the Czech central bank's (CNB) news conference after 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."

"Our evaluation of the economy as we see it today is consistent with the forecast and the forecast assumes certain increase in interest rates."

"We always keep the door open on the size of the increase and its timing, nevertheless this decision is consistent with the forecast."

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.

ON RISKS TO QUARTERLY INFLATION FORECAST:

"Today I even considered whether to even include a slide (in my presentation)."

"The risks on both sides of the forecast were evaluated as very slight."

"We see the development in the economy as very consistent with the forecast, however it can be mentioned that inflation is a little higher than the forecast expected, there are some exogenous factors ... but there is a question if they will be fulfilled."

ON EXCHANGE RATE:

"We did not devote large room to the exchange rate in the discussion, because it had corrected to a level which is more or less consistent with the level we count on in the forecast."

"It is certainly one of the factors which influenced our decision making."

"Last time it was downward risk, at this moment it is on the level that we assume in the forecast."

((Reporting by Jan Lopatka, Petra 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