Czech c.bank says firm crown poses risk to fcast

...out, according to minutes from policymakers' October 25 meeting.

The central bank (CNB) board held the two-week repo rate at a five-year high of 3.25 percent for a second consecutive month in the face of the record strong crown, but made clear tighter policy was needed soon to tame a rise in headline inflation.

"It was said that in a situation of a predicted narrowing of the interest rate differential, a faster-than-forecasted appreciation of the exchange rate could not be ruled out," said the minutes, which were released on Friday.

"It was also said in the discussion that even an appreciation trend sometimes undergoes corrections."

[PRAGUE/Reuters/Finance.cz]