By Leoš Rousek (Dow Jones Newswires 16. 11. 2010)
VIENNA (Dow Jones) -The Czech central bank should raise its headline interest rate, currently at a record low of 0.75%, because its latest economic growth forecast is too pessimistic given still rather optimistic growth expectations for Germany, Eva Zamrazilova, a lone hawk on the monetary policy board, said Tuesday.
"I think that [the central bank's] prognosis is very cautious," Zamrazilova told Dow Jones Newswires on the sidelines of an economic conference.
At the last two rate-setting meetings Zamrazilova voted to tighten the monetary policy by at least 25 basis points.
"I still stand behind this view," Zamrazilova said, adding that she sees the adequate interest rate level "somewhere between 1.00% and 1.50%."
Earlier this month the central bank, or CNB, said it expects the Czech Republic's gross domestic product to expand 2.3% in 2010, slowing down to annual growth of 1.2% in 2011 and before rebounding to 2.5% in 2012.
"Although the German growth rate may slow down, it won't be so profound to justify the [Czech] growth rate of as low as 1.2% [next year]," she said.