Czech central financial institution chief defends fee hike criticised by finmin

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PRAGUE, Oct 3 (Reuters) – Czech central financial institution governor Jiri Rusnok defended on Sunday the financial institution’s 75 foundation level rate of interest improve after the shock transfer was criticised by Finance Minister Alena Schillerova forward of a parliamentary election.

Schillerova mentioned the hike turned financial coverage towards one typical for growing nations. L8N2QW5J1

“Those words are absolutely incompetent,” Rusnok mentioned throughout a tv debate. “Terms are being used that do not fit.”

He mentioned financial coverage encompassed fiscal and structural insurance policies in addition to the central financial institution’s area of financial coverage, and that he was certain different central banks would observe go well with in tightening their financial insurance policies.

Ahead of the on Oct. 8-9 election, for which Schillerova leads the ruling ANO occasion’s candidate checklist within the south-eastern area, he mentioned the unbiased Czech central financial institution didn’t really feel pressured by the federal government.

“We do not feel any political pressure, these things happen at more tense phases of developments. In our situation, I do not feel any threat of this kind,” Rusnok mentioned.

The financial institution’s transfer, which exceeds the 50 foundation level tightening anticipated by monetary markets, took the primary repo fee to 1.5%.

Rusnok mentioned on Thursday extra hikes would observe, and repeated that on Sunday.

Reporting by Jan Lopatka; Editing by Catherine Evans

Czech Finance Minister Alena Schillerova attends an interview with Reuters in Prague, Czech Republic, October 11, 2019.   REUTERS/Robert Muller