(Adds Zamrazilova quote, background in paragraphs 2-7)
PRAGUE, May 15 (Reuters) - Wage growth higher than
9%-10% may increase the number of Czech central bank board
members who vote for a rate hike, following a 4-3 vote to keep
rates steady at the last policy meeting on May 3, Vice-Governor
Eva Zamrazilova said at a university debate on Monday.
"If companies were to raise wages for their employees, say
by more than some 9, 10%, then that could be the step for the
remaining board members to join (those voting for) raising
interest rates," she said.
The bank's hawkish messaging has focused on wages and fiscal
policy.
Wage growth in industry slowed to 9.3% in March from 10.8%
in February and 11.9% in January but the country's labour market
remains one of Europe's tightest.
The bank has held its main repo rate at 7% since new
Governor Ales Michl took the helm last July, but has turned
hawkish even as inflation has come down to 12.7% in April from
17.5% in January.
At the bank's May 3 meeting, two members voted for a 50
basis point cut, before joining a third to try a 25 basis-point
increase, coming one vote short of a majority.
Markets are still pricing a 50 basis-point rate cut near the
end of the year.
(Reporting by Robert Muller; writing by Jan Lopatka; editing by
Jonathan Oatis)
Messaging: jan.lopatka.thomsonreuters.com@reuters.net))
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