Czechs hike rates to 3.5%

The Czech National Bank's rate-setting board voted on Thursday to hike rates by 25 basis points to 3.5% after inflation rose to a six-year high in October.

Five of the seven-member board backed the change - the fourth increase in six months - which was widely expected in spite of the appreciation of the koruna after inflation climbed to 4% last month.

However, the central bank said at the time (http://subscription.centralbanknews.com/item.asp?itemid=29341) that "monetary policy relevant infla