* Known for flexible approach to policy
* Analysts welcome appointment, see no policy shift
* Says euro not an issue now
* INSTANT VIEW []; FACTBOX []
(Adds analyst quotes, background)
By Jana Mlcochova
PRAGUE, June 18 (Reuters) - Czech central bank vice governor
Miroslav Singer was appointed Governor on Friday, and signalled
he would stick to his predecessor's monetary policy course as he
looks to steer the country's economic recovery.
President Vaclav Klaus appointed economist Singer, 42, to
replace Zdenek Tuma who will leave at the end of June, seven
months before his term ends.
Singer, who like President Klaus has a very cautious view
about the Czech Republic adopting the euro, had been seen as a
favourite to succeed Tuma but vice-governor Mojmir Hampl was
also seen as having a chance.
Market players welcomed Singer's appointment on the view it
would secure continuation of the Czech central bank's
transparent and predictable policy. The crown <EURCZK=> though
did not react to his appointment, trading flat on the day at
25.78 per euro, after giving back earlier gains.
"He is extremely competent and a very strong candidate with
a strong grip on both financial supervision and the economy,"
said Raffaella Tenconi, a chief economist at Wood&Co.
But analysts said Singer has in the past also caught markets
off guard.
"Overall, no major change in actual policy expectations but
in terms of communication I'm a little bit fearful we could have
a little bit more erratic communication," Tenconi said.
The bank has maintained loose monetary policy with a series
of rate cuts during the financial crisis as the Czech economy
shrank 4 percent last year. The bank forecasts 1.4 percent
growth this year and Singer said after his appointment there was
unlikely to be any major shift in policy.
"I do not see at this point any event ... that would push us
into anything else than maybe further fine-tuning," he told
reporters.
CAREFUL ON REGULATION
Singer, who worked in the private sector as an economist and
manager prior to joining the bank in 2005, is cool on new
proposals to regulate the financial industry and on adopting the
euro.
On Friday, he said the biggest challenge was to preserve
"common sense" in the face of proposals for various changes to
the European Union regulatory framework from European
governments.
As vice governor of the bank and responsible for financial
markets regulation and supervision, he was a critic of Germany's
unilateral ban on naked short selling. []
President Klaus is a staunch euro sceptic, and Singer too is
known for a very cautious stance towards the euro. He said the
question of euro adoption was not on the agenda now given large
fiscal deficits.
The Czech Republic has no target date for euro entry and is
not expected to join until some time after 2015.
Singer is known for his flexible approach to policy,
favouring changes to rates when he sees it appropriate over a
preference for rate stability.
During the economic downturn, he always favoured a rate cut
when the board opted for stable rates before easing eventually.
The central bank board has seven members. The Governor has a
deciding vote if the board is evenly split in voting.
The board will be six-strong until Klaus appoints a new
member to replace Singer. He will also appoint two new board
members, after the term of two others, Pavel Rezabek and Robert
Holman, ends in February.
(Reporting by Jana Mlcochova and Roman Gazdik, writing by Jan
Lopatka; editing by John Stonestreet and Susan Fenton)
