Further monetary easing could take place if inflation falls below the lower end of the 1.5-3.5% inflation range, Monetary Policy Council member Jerzy Hausner told Poland’s public radio broadcaster Tuesday.

"Lowering interest rates is only justified when inflation falls below the lower end of the inflation range, that is 1.5% y/y," Hausner said. "Then I personally will support further rate reduction."
On Monday Hausner said that CPI could fall below 1.5% in 2014, which inclines rate-setters to retain an easing bias as such a development would be unfavorable for the economy.

"And if somebody thinks that you can freely lower interest rates, then I want to remind you that for a while our problem was that we were not able to bring inflation to the declared target," he said on Tuesday.

"This year it will be finally possible and it would be good if we managed to maintain it."

Polish CPI in December measured 2.4% y/y on a 0.1% monthly increase.

At its latest sitting in January, Poland's Monetary Policy Council made its third consecutive 25 bps cut to official interest rates and tweaked its bias, triggering suspicions that the easing cycle might go on hold for a while.