Poland's inflation suggests further rate cuts - rate setter
January 18, 2013
Poland should continue monetary policy easing given falling inflation but the Monetary Policy Council has to remain wary of the FX rate, MPC member Andrzej Kazmierczak told Catholic broadcaster TV Trwam late Wednesday.
"From the point of view of inflation, rates should be lowered, as the real interest rate is growing," Kazmierczak said, stressing that cuts were not certain. "Let's hope that if inflation holds low for a few months, there will be a chance to take more effective steps to revive the economy. . ."
When making its decisions, the council must pay attention to the exchange rate as well as several other factors, Kazmierczak said.
At its latest sitting in January, Poland's Monetary Policy Council offered its third consecutive 25 bps cut to official interest rates, but surprised markets by announcing that monetary easing may be coming to an end.