UPDATE 1-Czech cbanker says would weaken crown if needed- paper

* Deflation pressures decisive for potential interventions

* Bank not in situation now to debate specific details

* says FX has recently appreciated relatively markedly

(Adds quotes, details)

PRAGUE, Oct 11 (Reuters) - The Czech central bank is ready to intervene to weaken the crown currency if it feels there is a risk of long-term deflation pressures, Governor Miroslav Singer was quoted as saying on Monday.

But the bank is not currently discussing details about any such intervention, he said in an interview with daily Hospodarske Noviny.

The bank cut the key two-week repo rate to record low 0.25 percent on Sept 27 and signalled intervention on the foreign exchange market would be the next tool it would use if there was a need to ease policy more than by what is left on interest rates.

Policymakers are seeking to boost demand in the small and open central European export-reliant economy which has been in a recession since the final months of last year mainly due to a fall in private consumption caused by government austerity and poor consumer sentiment.

Singer said in the interview FX interventions were a logical next tool in a country which exports products worth 80 percent of its GDP.

"If we had the feeling that there is a threat of long-term deflation pressures, an obvious way how to tackle that would be through weakening the currency," the daily quoted him as saying.

He mentioned real estate prices which have been falling in the past years as demand faltered.

"The main thing now is that people do not get the feeling that (real estate prices) will continue to fall for ever. This can sometimes happen and for us it could be a reason for which we would have to intervene."

Singer said the bank did not have a "dramatically good feeling" about the current crown rate.

"The exchange rate has recently appreciated relatively markedly and it is stronger than projected in our forecast," he said.

Singer's comments helped send the crown 0.5 percent weaker to 25.034 per euro.

The unit has firmed by 3.35 percent since June 27, shrugging off two quarter-point reductions in interest rates that the central bank has made after more than 2 years of unchanged policy.

Singer said the reason for the crown's strength was partly the positive "image" of the Czech Republic and the central European region. There has been a shift in investors' mood, he said.

"Their (investors') impression that most European problems start in this region has changed into a feeling that most problems certainly do not begin here and often they do not even come here."

He said the ability of Czech producers to remain competitive on global markets was also a reason for the strong currency.

Singer said the bank was not now in a situation when it would debate specific details of the potential intervention, when asked if the bank has set specific levels that it would target in the intervention.

"We are not in a situation that we would debate this. And even if we were debating it, specific interventions are a thing that one is not expect to talk about."

(Reporting by Jana Mlcochova; Editing by Jeremy Gaunt)

((jana.mlcochova@thomsonreuters.com)(+420 224 190 479)(Reuters Messaging: jana.mlcochova.reuters.com@reuters.net))

Keywords: CZECH CBANK/