PRAGUE, March 29 (Reuters) - There was no debate about
rate cuts at the Czech central bank's board meeting on
Wednesday, and rates may have not peaked yet as the bank planned
to scrutinise fresh wage data in May, Governor Ales Michl said
on Thursday after the bank left the main interest rate unchanged
at 7%.
"The Bank Board still stands ready to raise rates,
especially if the risk of a wage-price spiral increases," the
bank said in a statement.
"From this point of view, market expectations that rates
have peaked may not materialise. We consider the market
expectations regarding the timing of the first decrease in CNB
(central bank) rates to be premature," the statement, read at a
news conference by Michl, said.
Michl also said a strong crown currency was welcome as it
helped bring inflation down.
"Strong crown remains the fundament, it makes import
cheaper, we welcome strong crown, it could be even stronger than
it is now," he said in response to a reporters question.
(Reporting by Jan Lopatka and Robert Muller)
Messaging: jan.lopatka.thomsonreuters.com@reuters.net))
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