Poland’s Monetary Policy Council can move to cuts - rate setter
October 11, 2012
Poland faces "relatively high" chances of an extended economic slowdown and will likely get a safe reading on inflation in a pending NBP projection, opening the door for an easing cycle, Monetary Policy Council (MPC) member Jerzy Hausner told PAP Polish news agency.
Hausner's concerns on growth come as he sees "no convincing possibilities to entice this growth through domestic economic policy" and has limited hopes for exports given weakness in the west.
"This would incline me to the thought that we are set towards an easing of monetary policy."
On the inflation front, Hausner expects that central bank researchers will give the all-clear for rate cuts when they hand over the next set of macroeconomic projections in November.
A decision to hold off on the first rate cut in October, in defiance of the market consensus, was "not surprising" as no rush is on, Hausner says.
The value of the NBP's macroeconomic projection and the fact that "the Council rejects any catastrophic scenario in the belief that nothing sudden and unfavorable will happen in the Polish economy" both put paid to any need to rush, he adds.