(Bloomberg) -- Czech central bank board member Tomas Holub said he expects interest rates to decline further and that the debate will now focus on whether policymakers should slow the pace of monetary easing.

After three consecutive cuts by half of a percentage point each — which brought the benchmark rate to 5.25% — the Czech National Bank will “sooner or later” return to standard reductions by 25 basis points, Holub said in a debate on public TV on Tuesday.

“The discussion will now be whether we should do it in June or sometime later,” he said. 

Faster-than-expected wage growth in the first quarter would speak in favor of a smaller cut this month, although that factor could be balanced out by the koruna currently trading at stronger levels than the central bank had forecast, according to Holub.    

Holub was one of two board members who considered a 75 basis-point cut as an option last month, but in the end voted with the board’s majority for a half-point reduction.

©2024 Bloomberg L.P.