PRAGUE, Jan 11 (Reuters) - The Czech National Bank will continue raising interest rates although it needs to mind external conditions and other central banks’ loose policy, board member Oldrich Dedek was quoted as saying on Friday.
The Czech central bank lifted interest rates five times in 2018 but paused at its last meeting in December, saying lower inflation and external factors worked against the need to rush with increases.
“The question is whether there are some costs if we go too fast with this normalisation,” Dedek was quoted as saying in an interview with news agency Bloomberg.
“I see the cost being that our economy may be in a competitive disadvantage against others who still have low interest rates.”
He added he did not see a weak crown currency as being an automatic trigger for rate hikes.
Reporting by Jason Hovet