CZECH CENTRAL BANKER HOLUB: MY REASONS FOR FASTER RATE CUTS INCLUDE CPI NEAR TARGET, OUTLOOK AS WELL
PRAGUE, Oct 16 (Reuters) -The Czech central bank can reduce interest rate faster given the outlook for inflation near target and rate cuts by major central banks, board member Tomas Holub said in a presentation on Wednesday.
Holub said fine-tuning based on lagging data did not make sense given delays in transmission of central bank decisions to the real economy, and he added the economy was below potential, fiscal policy was restrictive this year and excessively tight policy would hurt growth.
Holub, who voted for a 50-basis-point cut at the last meeting which delivered a 25-basis-point reduction, will leave the board in December. The bank's next policy meeting is on Nov. 7.
Reporting by Jan Lopatka and Jason Hovet
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