WARSAW, Oct 25 (Reuters) - The Czech National Bank (CNB) will not likely follow the European Central Bank’s recent easing in the near term, board member Tomas Holub said in a presentation to be given in Warsaw on Friday. “Our debate now focuses on domestic inflationary factors versus external risks. The CNB is thus unlikely to follow the ECB’s recent easing in the near term,” the presentation said.
The bank has paused a rate-tightening cycle after bringing the main repo rate from 0.05% to 2.00% in eight steps, the last coming in May, but has kept the debate open on a potential small further increase. In September two out of seven board members voted for a hike.
The bank next meets on policy on Nov. 7.
The bank’s August update to its quarterly inflation forecast, the main tool for policymaking, assumed one more hike followed by policy easing next year, but the board instead opted for stability. (Reporting by Alan Charlish, writing by Jan Lopatka, editing by Jason Hovet)