Poland’s Finance Minister welcomes more rate cuts to follow
March 12, 2013
Finance Minister and deputy PM Jacek Rostowski
Poland's Monetary Policy Council should continue to reduce interest rates after a brief pause in easing, Finance Minister Jacek Rostowski told radio TOK FM, welcoming 50 bp cut to record low level of 3.25%.
Rostowski said he was pleased with the Council's decision last Wednesday to cut the rates by more than analysts and investors had expected.
"I am glad that interest rates were reduced by 1.5 pps in the course of last five months . . . and I personally hope that after a short pause, maybe one month, this policy will be continued," Rostowski said.
However, he added that the Council should have launched the easing cycle six months sooner than it did.
"I regret it hadn't happened 6 months earlier . . . our economy would have been stronger today, unemployment lower," he said.
Rostowski has said many times that Poland’s the cost of credit in Poland is too high and that this is aggravating the current economic slowdown.
Poland's Monetary Policy Council cut interest rates by 50 bps at the March sitting in a surprise move after four consecutive 25 bps cuts.
The council described the move as "conclusion" of the easing cycle and switched to neutral bias, a "wait-and-see approach" with monetary policy.
The reference rate is presently at an all-time low of 3.25%, compared with 4.75% in October. The central bank began its easing cycle in November, followed by cuts in December, January, February, and March.