PRAGUE, March 12 (Reuters) - Czech National Bank
Governor Ales Michl has received the highest level of security
clearance from the state security office, a bank spokesperson
said on Sunday, following criticism he may not be able to fill
his mandate without it.
Michl, a board member at the bank since 2018 with
second-tier "Secret" security clearance, had requested the
highest "Top Secret" security clearance when he was picked to
become governor in May last year. He had remained on "Secret"
clearance since taking up the post in July.
The central bank said Michl received his certificate for
"Top Secret" clearance on Friday, adding that the relevant
security checks took place over the standard length of time
allowed by law.
New President Petr Pavel had said earlier that a person
without proper clearance could not stay in office, and Michl's
predecessor Jiri Rusnok has also been quoted in the media as
saying it would be exceptional for a governor not to have
top-level security clearance.
The central bank has said before that not having the
top-level security status was not an obstacle to the governor
filling his mandate, and the bank itself does not produce or
handle "Top Secret" documents.
The central bank has been battling a surge in inflation to
three-decade highs in the past year. It has held interest rates
steady since Michl became governor despite some economists and
organisations like the International Monetary Fund suggesting
more rate hikes would quell inflation faster.
The key base rate stands at 7.00% after a year-long cycle of
hikes totalling 675 basis points. Headline inflation eased to
16.7% year-on-year in February from 17.5%.
"This decline will continue in the coming months," Michl
said in the statement on Sunday, reiterating that a strong and
stable crown, high interest rates for a longer period and
reductions in the state deficit were needed to bring down
inflation.
(Reporting by Jason Hovet; Editing by Hugh Lawson)
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