FACTBOX-Czech c.bankers' recent remarks on monetary policy

...

Talk from Czech central bankers has turned distinctly dovish in recent weeks in light of the crown's rise to record highs in late December and early January.

The seven-member bank board is widely expected to keep interest rates on hold for the fourth month running on Jan. 25, after 75 basis points worth of hikes since it began tightening policy in October 2005.

Following are key extracts from recent comments from CNB board members since the previous monthly policy meeting on Dec. 20.

=========================COMMENTS==============================

BOARD MEMBER MOJMIR HAMPL, REUTERS INTERVIEW, JAN 16

"I would say that the Czech economy currently faces no significant inflationary pressures.

"For me personally, there is a big question mark over the timing of a potential rate increase."

NEWS REPORT ON INTERVIEW: [ID:nL16886267]

HIGHLIGHTS OF HAMPL'S COMMENTS: [ID:nL16815103]

MEMBER VLADIMIR TOMSIK, INTERVIEW IN EURO WEEKLY, JAN 15

"The exchange rate development of the crown from late last year does not have fundamental support in the development of the balance of payments," he said, adding a widening external deficit might weaken the crown.

REPORTS: [ID:nL15189218] [ID:nL15193231]

VICE-GOVERNOR MIROSLAV SINGER, QUOTED IN NEWSPAPER, JAN 10

"It is currently not about a near-term interest rate increase, and it is likely that I will seriously consider whether or not it would be appropriate to lower interest rates."

REPORT: [ID:nL10244378]

GOVERNOR ZDENEK TUMA, NEWSPAPER INTERVIEW, JAN 3

"I do not want to draw any strong conclusions for the first half of the year. But the stronger the exchange rate, the lower the probability that we will nudge interest rates higher in the foreseeable future."

REPORTS: [ID:nL0391180] [ID:nL0395810]

MINUTES TO DECEMBER MONTHLY POLICY MEETING, JAN 3

"The Board agreed that the downside risks of the forecast were even higher in December than they had been in November," the minutes said, adding the crown was stronger than the bank had forecast and a "considerable downside risk" to inflation.

"However, it was said that the forecast also contained upside risks to inflation."

REPORT: [ID:nL0398382]

FULL TEXT OF MEETING MINUTES: [ID:nPRA001100]

VICE-GOVERNOR LUDEK NIEDERMAYER, MONTHLY NEWS CONFERENCE, DEC 20

"The board took a simple stance on the inflation prediction: The risks are skewed in the anti-inflationary direction."

HIGHLIGHTS OF NIEDERMAYER'S COMMENTS: [ID:nnL20599163]

REPORT ON POLICY DECISION: [ID:nL20551907]

===================== INFLATION FORECAST ======================

The CNB is due to release a quarterly update to its inflation projections for 12-18 months ahead also on Jan. 25.

In October, it saw annual inflation running at 2.8-4.2 percent in September 2007 and 3.5-4.9 percent in March 2008, assuming interest rates continue to rise gradually.

DETAILS OF PREVIOUS CPI AND GDP FORECASTS: [ID:nPRA000994]

========REVIEW OF KEY ECONOMIC INDICATORS ==========

* Dec CPI up 1.7 pct y/y (versus market forecast +1.6 pct)

* Dec producer prices up 2.6 pct (vs +2.5 pct)

* Nov industrial output up 7.6 pct (vs +8.0 pct)

* Dec Purchasing Managers' Index: 56.2 (previous 55.6)

* Crown vs euro trading at around 27.850 , up 1.5 percent versus CNB's October forecast.

(Compiled by Marek Petrus in Prague)

((Editing by Matthew Tostevin; 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 CENTRALBANK/QUOTES

[Reuters/Finance.cz]