Oct 15 (Reuters) - Three of the Czech central bank's (CNB) seven policymakers have suggested a recent rise in the crown could slow the pace of further interest rate rises following this year's three increases since May.
CNB Vice-Governor Miroslav Singer and policy board member Vladimir Tomsik both cited the crown's 4.5 percent rally since early July as curbing the need for additional policy tightening in the booming economy.
Governor Zdenek Tuma said after last month's rate-setting meeting the trajectory of rising interest rates may be lower than previously expected.
A majority of 11 analysts in a Reuters poll among 16 CNB watchers expected the CNB to hold the two-week repo rate at a five-year high of 3.25 percent on Oct. 25, after 150 basis points worth of hikes between October 2005 and August 2007.
Five forecast another 25 basis point increase this month.
For a Reuters poll on analysts' interest rate expectations, click on [].
Forward money market rates <CZKFRA> are pricing in one quarter of a percentage point rate rise by the end of the year.
Following are extracts from recent comments from CNB board members.
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GOVERNOR ZDENEK TUMA, OPENING ADDRESS TO A CONFERENCE, OCT 15
"There are relatively significant tensions on the labour market, pressures on wages to grow can be expected to develop."
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VICE-GOVERNOR MIROSLAV SINGER, INTERVIEW WITH DOW JONES NEWSWIRES, OCT 15
"Because the crown has appreciated in the last months, the (interest rate) increases, in my mind, can be slower than they have been, but there is still room for rates to go up."
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BOARD MEMBER VLADIMIR TOMSIK, INTERVIEW WITH HOSPODARSKE NOVINY DAILY, OCT 11
"We are clear about where interest rates should be heading in medium-term horizon. It is not a debate about whether to be raising them or not.
"It is a debate about when and by how much to do so. It is ... a question how big the rise in our interest rates will be given the most recent events."
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BOARD MEMBER MOJMIR HAMPL, INTERVIEW WITH BLOOMBERG, OCT 11
"Domestic factors continue to be pro-inflationary, indicating that the process of increasing rates is not over yet.
"I would say that domestic pro-inflationary factors are primary and information from outside is only secondary."
MINUTES OF SEPT 27 POLICY MEETING, RELEASED ON OCT 5
"The board discussed the current evolution of the exchange rate and agreed that its present level was strongly anti-inflationary compared to the forecast."
"The turmoil on global financial markets and the approval of the fiscal reform were identified as events raising the uncertainty of the decision-making process above its usual level."
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GOVERNOR ZDENEK TUMA, NEWS CONFERENCE AFTER MONTHLY MEETING, SEPT 27
"If we make the assessment that perhaps the secondary impacts (of indirect tax changes) are not very significant, then yes ... theoretically it could lead to, for example, the trajectory of interest rates in the next forecast possibly being somewhat lower than it was in the previous one."
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(Compiled by Marek Petrus in Prague)
((Editing by Gerrard Raven; 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
