Poland's Monetary Policy Council has room for rate cuts and will take advantage of it if need be, NBP central bank president Marek Belka told Bloomberg TV during a conference in Jackson Hole on Monday.

"There is room to reduce which, if necessary, I'm sure we'll utilize," Belka said. The Polish economy is slowing down, but exchange rate fluctuations are no problem and the current zloty rate is good for exports, Belka added.

The persistently high inflation forced the rate council to hike interest rates by 25 basis points in May to 4.75%. Analysts expect the rate council to keep interest rates on hold until the end of the year because inflation, at 4.0% in July, has been above the central bank's target for most of the last five years.

A sitting of the rate council is scheduled on September 4 and 5.