By Robert Muller and Jason Hovet (Reuters 13. 6. 2018)
The Czech economy is ready for another interest rate hike as soon as this month as the labour and housing markets start to overheat, ratesetter Tomas Nidetzky said.
The Czech National Bank raised its benchmark two-week repo rate by 25 basis points to 0.75 percent in February, its third move since becoming the first monetary authority in the European Union to tighten policy last August.
Debate over how soon it may lift rates again has intensified this month as the Czech crown sputters, wages rise at their fastest in 15 years and inflation exceeds policymakers' 2 percent target.
"I do not think there is a difference if we (raise rates) now in June, or in August, or that it would matter significantly for the economy,"Nidetzky told Reuters in an interview on Tuesday.
"In other cases I always said: 'Let's wait for figures from the economy and the new outlook.' Today we already have the figures."
The comments are among the most hawkish in the current debate by any member of the central bank's seven-strong board, which next meets on June 27.
The bank updates its economic outlook in August. The current one, built on assumptions an appreciating crown would provide the bulk of monetary tightening in 2018, sees rates rising only at the turn of the year.
But with a tight labour market adding to inflationary pressures, some central bankers have signalled a hike may come this year.
Markets are positioning for a move by September. Some analysts say recent data would warrant a hike by August and a few that June is not too early.
Vice-Governor Mojmir Hampl, the lone vote for a rate increase in May, has also signalled he wants rates to go up quickly, while Governor Jiri Rusnok last week said crown weakness was creating space for a hike, without specifying when.