BUDAPEST, Dec 8 (Reuters) - The Czech central bank's next rate decision will largely depend on inflation and GDP data due Wednesday and there could room for a rate cut if inflation pressure is below the bank's forecasts, board member Eva Zamrazilova said late on Tuesday.
'I'm really not decided, it's a very difficult situation,' she told Reuters in an interview in Budapest on the sidelines of a conference. 'There may be some strong arguments in these data on both sides.'
She said that signs of increasing inflationary pressure or higher than expected consumer demand would support keeping rates at their current level of 1.25 percent at the next meeting, while lower than forecast inflation or weaker consumer demand could change the balance in favour of a rate cut.
'Of course there is some small space (for a rate cut) if there are no inflationary pressures on the horizon, but if there are, it's against (a cut). That's the story,' she said.
Czech inflation data for November and detailed third-quarter GDP figures are due to be published at 0800 GMT on Wednesday.
The bank will hold its next rate setting meeting on Dec. 16. Its board voted on Nov. 5 by a tight 4-3 majority to keep its key rate on hold at a record low of 1.25 percent. Zamrazilova voted to keep rates unchanged.
(Reporting by Sandor Peto) Keywords: CZECH RATES/ (sandor.peto@thomsonreuters.com; +36-1-327-4744; Reuters Messaging sandor.peto.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'I'm really not decided, it's a very difficult situation,' she told Reuters in an interview in Budapest on the sidelines of a conference. 'There may be some strong arguments in these data on both sides.'
She said that signs of increasing inflationary pressure or higher than expected consumer demand would support keeping rates at their current level of 1.25 percent at the next meeting, while lower than forecast inflation or weaker consumer demand could change the balance in favour of a rate cut.
'Of course there is some small space (for a rate cut) if there are no inflationary pressures on the horizon, but if there are, it's against (a cut). That's the story,' she said.
Czech inflation data for November and detailed third-quarter GDP figures are due to be published at 0800 GMT on Wednesday.
The bank will hold its next rate setting meeting on Dec. 16. Its board voted on Nov. 5 by a tight 4-3 majority to keep its key rate on hold at a record low of 1.25 percent. Zamrazilova voted to keep rates unchanged.
(Reporting by Sandor Peto) Keywords: CZECH RATES/ (sandor.peto@thomsonreuters.com; +36-1-327-4744; Reuters Messaging sandor.peto.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.