PRAGUE (Reuters) - A recent jump in Czech inflation is temporary and the central bank is unlikely to have to raise interest rates for at least a year, rate setter Tomas Holub was quoted as saying on Monday.
“At this moment I can hardly imagine we could even just contemplate rate hikes,” Holub was quoted as saying in an interview with Bloomberg news agency. “Certainly not this year and probably not in the first half of next year.”
He also said recent data suggested further monetary policy easing was not needed, after the bank cut interest rates by a cumulative 200 basis points to 0.25% since March. CZCBIR=ECI
Holub said that he would likely vote for stable rates when the bank next meets on policy on Aug. 6 and that he expected this to be the majority view on the seven-member board.
He also said the board had shelved a debate about whether to start selling returns on its foreign exchange reserves. The bank’s reserves grew to around 60% of gross domestic product during an intervention regime in 2013-2017.
Reporting by Jason Hovet; Editing by Hugh Lawson