PRAGUE May 17 It is possible the Czech central
bank could return to a normal monetary policy mode by raising
interest rates from near zero in the second half of the year
after letting the crown float freely last month, board member
Tomas Nidetzky said on Wednesday.
The central bank abandoned a cap on the crown currency's
exchange rate on April 6, calling it the first step to
tightening monetary conditions.
Nidetzky said policy would be determined by data and not
time and said also it was clear rate rises would be gradual.
"It is possible in the second half (to start with a return
to normal policy)," Nidetzky told Reuters on the sidelines of a
parliamentary budget committee meeting.
"The economy is doing well, we will see how inflation will
develop, we will see if the successful development, including
the exchange rate, will continue. If conditions will be in
place... we will start to return to standard monetary policy.
"Standard policy means raising interest rates."
(Reporting by Robert Muller; Writing by Jason Hovet)