Rate decision due Dec 19 at 230 p.m. 1330 GMT
Governor to comment on decision at 345 p.m.
14 of 15 analysts in poll see 25bp rate cut
Median forecast sees main rate at 3.00 at endQ325 pvs 3.25

PRAGUE, Dec 13 Reuters The Czech National Bank CNB will interrupt its policyeasing cycle next week after a year of consecutive rate cuts, but will return to easing in the first quarter next year, a Reuters poll suggested on Friday.

The central bank has cut rates by 300 basis points to 4.0 since last December, but persistent growth in the prices of services and a recovery in food prices that had previously weighed on inflation have added to reasons for a pause.

All 14 analysts in the poll said there would be no change in interest rates on Dec. 19.

A pause has been well flagged by central bankers, including Governor Ales Michl.

ViceGovernor Eva Zamrazilova told Reuters this week that a pause was warranted, but rate cuts may again come into consideration if inflation starts falling in January from an uptick to the 3 area expected in December, and if annual repricing by traders in January points to disinflation next year.

In central Europe, Hungary39;s central bank which like its Czech peer had been cutting rates since last year paused in October and November as falls in the forint raised price pressure concerns.

Manufacturing sluggishness caused by weak demand from trade partners including Germany has slowed the Czech recovery, otherwise driven by a consumer rebound….