RPT--Czech policymakers give different views on rates

                                
 (Repeats story published late on Wednesday)
                                
 * Vice-Gov Singer:sees rate cuts if external econ much worse
                                
 * Zamrazilova sees little room for cuts, next move a hike
                                
 * Gov Tuma: sticks to CPI fcast, no comment on rates
                                
 
                                
 PRAGUE, Sept 9 (Reuters) - Czech central bankers delivered
mixed messages on Wednesday on the next move in interest rates
with one talking of a further rate reduction and the other
seeing a hike.
                                
 Czech rates are at their lowest of 1.25 percent after
policymakers trimmed them by 25 basis points in August as annual
inflation remained close to zero and the economy experienced a
record contraction in the first half of the year.
                                
 Faltering demand from Western Europe for the country's
mainly industrial products has hit growth, showing how closely
the small and open economy depends on the euro zone, and more
particularly the German economy.
                                
 "Should the external environment deteriorate sharply,
further rate cuts may be considered," Vice-Governor Miroslav
Singer said in a presentation on the bank's Web site.
                                
 Another member of the seven-strong governing board, Eva
Zamrazilova, said room for further monetary policy easing was
slim. "The room for easing here is... negligible. I am convinced
that the next move in rates will probably be upwards," she said
in an interview on Web site www.investicniweb.cz
                                
 Czech consumer prices dipped by 0.2 percent in August from
July, putting the annual inflation rate at 0.2 percent, an
almost six-year low. [ID:nL9191590]
                                
 The bank targets inflation at 3 percent +/- 1 percentage
point but will switch to a 2 percent target as of 2010, in line
with the euro zone.
                                
 In a separate interview for business Web site Patria,
Governor Zdenek Tuma said he stuck to the bank's views that
inflation could fall below zero temporarily but then will return
to the bank's target.
                                
 "A fiercer intervention from our side would be needed if the
inflation trajectory was negative for a protracted period of
time," Patria quoted Tuma as saying. He did not make direct
comments on interest rates.
                                
 In other remarks, Tuma said the crown currency was not far
from its equilibrium level and despite increased volatility, the
floating exchange rate regime has proven better than a fixed
one.
                                
 He also said he would welcome a stronger government reaction
to lower budget revenues as the country faces a steep rise in
deficits with next year's budget gap proposed at a record 230
billion crowns ($13.06 billion). [ID:nPRA004745]
                                
 Analysts at 4Cast said the conflicting policy remarks
probably meant "unchanged rates ahead of us (and) a long period
of wait and see". 
                                
 The crown <EURCZK=> showed little reaction to the comments,
trading 0.3 percent up on the day at 25.43 per euro. A currency
dealer said on the bankers' comments: "One is up, one is down
and the other neutral. Everyone on the market can choose his
story."
  (Reporting by Jana Mlcochova, editing by Jan Lopatka and
Stephen Nisbet)