Central Banking

New Czech central bank head faces political row

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Czech President Vaclav Havel chose Zdenek Tuma as the country's new central bank governor on Friday, setting up a showdown between Tuma and the government over future interest rate policy. Tuma, 40, will be officially appointed next week for a six-year term beginning on December 1. Havel also said that Michaela Erbenova and Jan Frait had been appointed to the bank board, while Ludek Niedermayer was elevated to vice-governor from chief executive director.

Tuma, a tennis and skiing fan, joined the

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