Czech central bank governor: faster wages, weaker crown may bring earlier hike

BRATISLAVA: The Czech National Bank may raise interest rates sooner than expected as faster wage growth and a weaker-than-expected crown exchange rate create some space for an earlier hike, Governor Jiri Rusnok said on Tuesday.

"There is no direct connection (between faster wage growth and interest rates), but in combination with a weaker than expected crown exchange rate, some space is opening for us to raise rates sooner than we originally thought," Rusnok told reporters on the sidelines of a conference.

The central bank's staff forecast puts the next rate hike at the turn of the year at the earliest. The bank has raised its main two-week repo rate, currently at 0.75 percent, in three steps since last August.