Czech central banker Michl, opponent of policy tightening, to become new governor – news website

div classBodysc17zpet90 cdBBJodivpPRAGUE Reuters Czech National Bank board member Ales Michl, known for opposing interest rate hikes over the past year, will be appointed as the banks new governor by President Milos Zeman, new website seznamzpravy.cz reported on Friday.p

pThe website said it had obtained the news from sources familiar with the results of Zeman‘s meetings with candidates for the central bank’s top job, which will only become available from July when current Governor Jiri Rusnoks term ends. pdivdivdiv classBodysc17zpet90 cdBBJodiv

pThree sources in the financial community told Reuters they had also heard that Michl would be appointed, although the three do not have direct knowledge of the process.p

pThe central bank had no immediate comment and a spokesman for Zeman declined to discuss the matter. Michl did not immediately answer a request for comment.p

pPrior to his appointment to the banks board in 2018, Michl, 44, worked as economist at Raiffeisenbank, set up an investment fund and advised former finance and prime minister Andrej Babis.p

pMichl has been at odds with the majority on the board, which has raised rates by 550 basis points since last June to 5.75, with the latest hike coming on Thursday to tame inflation which the bank forecast would touch 15 in June. p

pThe extent to which such an appointment would change the bank‘s course depends on who takes the seats of ViceGovernor Tomas Nidetzky and board member Vojtech Benda, both part of Rusnok’s fivestrong majority on the board throughout the ratetightening cycle. p

pNidetzky‘s and Benda’s terms end together with Rusnoks, although they could both be reappointed for another six years.p

p Reporting by Robert Muller Editing by Jon Boyle and Hugh Lawsonp

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