Finance Minister Alena Schillerova shares an interview with Reuters in Prague, Czech Republic on October 11, 2011. PRAGUE, Oct 3 Reuters - Alena Schillerova defended the bank's 52 basis point interest rate increase on Sunday after the surprise move was criticised by Finance Minister Jiri Rusnok ahead of parliamentary elections.
These words were absolutely incompetent, Rusnok said during a TV debate. Terms are used that do not fit. He said monetary policy involved domestic fiscal and structural policies as well as the central bank's domain of monetary policy, and that he was sure other central banks would follow suit in tightening their monetary policies.
Ahead of the Oct 8 - 9 election, for which Schillerova leads the ruling ANO party's candidate list in the south-eastern region, he said the independent Czech central bank did not feel pressured by the government.
We do not feel any political pressure, these things happen at more tensional phases of developments. In our situation, I do not feel any threat of this kind, said Rusnok.
The bank's move, which exceeded the 50 basis points tightening expected by the financial markets, took the main repo rate to 1.5%.
Rusnok repeated hikes on Thursday and said that will follow on Sunday.