* Rates stay at record low, seen up next year
* Crown slightly up, broke 2-yr high earlier
* News conference at 1330 GMT
(Adds crown, quote, background)
PRAGUE, Nov 4 (Reuters) - The Czech central bank kept interest rates flat on Thursday as expected, reflecting weak demand-led inflation pressures, strong currency, and fiscal cuts that will hold back household spending.
The bank's governing board voted to keep the key two-week repo rate used to drain excess liquidity at a record low of 0.75 percent where it has been since May.
The Czech rate is the third lowest in Europe and below the euro zone's where the ECB was expected to leave its benchmark rate unchanged at 1 percent on Thursday.
Eighteen out of 19 analysts in a Reuters poll expected the bank to keep rates flat. One forecast a 25 basis point rise.
Bets on interest rate markets also suggested no change, with forward rate agreements
The crown slightly firmed to 24.395 to the euro
Most analysts said the bank would raise inflation and GDP outlooks in the quarterly update of its staff forecast, pushing the time of an expected rate hike to the first or second quarter next year from the third quarter implied in the August forecast.
"If the central bank has given up its expectations for a second bottom, then it is possible to expect that the interest rate path (hike) will move from the middle of 2011 close to the beginning of 2011," said Vojtech Benda, a senior analyst ING Commercial Banking said.
But the U.S. Federal Reserve committed on Wednesday to buy more government debt, which economists said could boost the crown as investors ditch low-yielding assets in developed economies for higher yields in emerging markets.
This, some argued, spoke against any quick rate hikes, as well as worries about the strength of the recovery and the government's fiscal retrenchment.
The bank called a news conference for 1330 GMT to spell out reasons for the decision and give details of its updated staff forecast. (Reporting by Jana Mlcochova; Editing by Ron Askew)