Czech central bank chief: No reason to ease monetary policy further

The Czech National Bank has no reason to ease monetary policy further as inflation is slightly above the central bank's target, Governor Jiri Rusnok said on Sunday.

Adds governor's quote, details on inflation targeting

PRAGUE, Aug 30 (Reuters) - The Czech National Bank has no reason to ease monetary policy further as inflation is slightly above the central bank's target, Governor Jiri Rusnok said on Sunday.

The central bank's main interest rate CZCBIR=ECI stands at 0.25% after a series of cuts it made in spring to help the economy hit by the global pandemic caused by the new coronavirus.

"There is no reason to ease monetary policy further when we have inflation above target or returning slowly to the target," Rusnok said in a televised debate.

The central bank targets inflation at 2% with a tolerance band of one percentage point in both directions.

In July, annual inflation accelerated to 3.4%, in line with the central bank's macroeconomic forecast, which sees the consumer price index (CPI) above 3% until the end of this year.

Central bank Vice-Governor Tomas Nidetzky said earlier this month that the bank would tolerate inflation above its target in the coming period, as the main priority is to help the economy recover from the impact of the coronavirus.

The central bank's board kept interest rates unchanged at its last two meetings in August and June. The next monetary policy meeting is scheduled for Sept. 23.

(Reporting by Robert Muller, Editing by Michael Kahn, William Maclean)

((robert.muller@thomsonreuters.com; +420 234 721 615; Reuters Messaging: robert.muller.thomsonreuters.com@reuters.net))

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