PRAGUE, Feb 6 (Reuters) - The Czech central bank (CNB) left borrowing costs near zero on Wednesday and said its new forecast continued to imply further monetary policy easing although it was seen as less urgent.
Following are comments by Governor Miroslav Singer at a news conference following the bank's meeting:
'The gist of the forecast is that we may need monetary policy easing. The need may look less urgent but still is here. The urgency change is due to the fact that monetary policy conditions relaxed due to foreign exchange rate easing. That's were we stand now.'
'It seems that the present level of rates is slightly closer to the border... where we would be deciding whether to intervene or not. (The rate forecast) has approached the border when further easing should be needed.'
'It is important to realize that we moved closer to this border mainly because the market is looking ahead and it has contributed to the easing of monetary conditions already now through the weakening of the exchange rate.'
'Perhaps a substantial change is that we see risks to the forecast as balanced.'
Despite the fact that they are significant, we have agreed that they are somewhat lower on both sides. In other words, the possibility of the greatest shocks seems to be a little dampened.'
(Reporting by Jana Mlcochova and Robert Mueller) Keywords: CZECH RATES/HIGHLIGHTS
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