Central bank opposed to multiple terms on rate council
September 16, 2013
Poland's central bank NBP is against a Finance Ministry plan to allow Monetary Policy council members repeat terms on the rate setting body, the NBP's opinion to the draft legislation shows.
"Introducing the possibility of holding council membership for two terms could raise doubts about NBP independence and reduce credibility in monetary policy," the NBP wrote in its position.
That, in turn, "could unfavorable affect realization of the NBP's basic goal to stabilize prices," the NBP wrote.
By NBP logic, the option for a second term could open the door for policy makers naming council members to "exert pressure" over council members to secure certain decisions in monetary policy, the NBP wrote.
At issue is an element of an amendment to the law governing the NBP as written by the Finance Ministry. That draft bill, still in its early stages, would allow MPC members to serve a second six-year term.