(Adds Holub's quotes, background)
PRAGUE, Feb 27 (Reuters) - Czech central banker Tomas
Holub is again likely to vote for higher interest rates at the
next policy meeting on March 29 on concern that the bank could
miss its inflation forecast, he was quoted as saying in an
interview with daily E15 on Monday.
The Czech National Bank (CNB) raised its main rate by 675 basis points between June 2021 and June 2022
but has since held it at 7%, with the revamped board having
declared rate stability as its objective.
Holub voted in the minority for an increase of 50 basis
points at the bank's last policy meeting on Feb. 2. He said in
the interview that he was again ready to support an increase of
50 basis points at the March 29 meeting.
"It is quite likely, however, we will get February inflation
and last year's wage growth data in the meantime," Holub said.
"I don't have any information to (make me) rethink my view
from early February, but I cannot rule out that something will
appear that will change my opinion," he said.
Holub said inflation is likely to have peaked but might
recede more slowly than predicted by the central bank, which has
forecast single-digit levels from mid-2023 and towards its 2%
target early in 2024.
Annual inflation accelerated to 17.5% in January but is
expected to have begun to drop this month, with Holub predicting
that it could still be around 5% in early 2024.
"My nightmare is that early next year, instead of thoughts
about getting rates down fast to around 4% from 7%, we will tell
ourselves: unfortunately, it was not enough and we have to stick
to (a base interest rate of) 7% for another year," Holub said.
(Reporting by Robert Muller
Editing by David Goodman
)
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