Czech central bank vice-governor Zamrazilova: larger than 25 bps rate cuts possible if inflation falls faster

PRAGUE (Reuters) – The pace of Czech central bank’s lowering of interest rates will depend on the pace of decline in inflation, the bank’s Vice-Governor Eva Zamrazilova said on CNN Prima News television on Sunday.

“If the decline toward 2% (in inflation) is slower than we think, it would mean let’s say rather those small, 25-basis point decreases,” she said in a debate broadcast live.

“If inflation falls faster, it possible to sometimes make a more significant rate lowering.”

The bank started its rate-easing cycle with a 25 basis-point reduction in the main repo rate to 6.75% on Dec. 21.

(Reporting by Jan Lopatka)