Czech Policymaker Says Hike Likely Next Move But No Need to Rush

A senior Czech central banker downplayed any possibility of imminent monetary tightening in a reaction to a surge in oil prices, though acknowledged an increase in interest rates now appears to be the more likely next change in policy.

While officials had been open to discussing a further cut in the benchmark to 3.25% earlier in the year, the Iran war effectively ended such considerations with money markets now indicating bets on more than three quarter-point hikes within a year. But Deputy Governor Eva Zamrazilova joined colleagues on the Czech National Bank board saying there is little pressure to hike right now.