Finance Minister: Czech National Bank should not rush interest rate hike

Ahead of the Czech National Bank's meeting later this week, Finance Minister Bohuslav Sobotka said on Tuesday the National Bank should not rush an interest rate hike. It has been widely expected the bank will raise rates by a quarter point to 2.50 percent. But, the finance minister said he had a more optimistic prognosis for inflation in 2004 and 2005, expecting the inflation rate would stay below 3.00 percent.

The Czech National Bank is an independent institution on which the government wields only limited influence. Nevertheless, on Tuesday Minister Sobotka suggested the bank should "act responsibly" in lieu of the cabinet's plan to kick-off high growth.