Czech c.banker: exit from FX interventions likely later than early 2015

PRAGUE, June 11 Wed Jun 11, 2014 11:09am EDT

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PRAGUE, June 11 (Reuters) - The Czech central bank will most likely exit from its regime of foreign exchange market intervention later than the beginning of 2015, Vice-Governor Mojmir Hampl said in a presentation posted on the bank's website on Wednesday.

Hampl said exit from the regime, which keeps the crown weak to avoid deflation, would come only once monetary policy tightening is needed and that need was sufficiently strong and durable to make sure the bank does not have to return to it.

The comments were in line with the bank's May monetary policy meeting conclusions.

Hampl said the exit may come in one or more steps and that the crown will not return to pre-intervention levels because the weaker exchange rate will have passed through to the economy. (Reporting by Jan Lopatka, editing by Jason Hovet)

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