Interest rates likely to remain stable to end-year – central bank head
March 18, 2014
Poland's rate council seems likely to hold rates to end-2014, with first rate hikes to come in 2015, central bank NBP head Marek Belka said in an interview for Bloomberg Businessweek magazine.
"A lot suggests, what is being articulated by some rate council members, that in principle rates should be expected to remain stable to the end of this year," Belka said. "That would mean that in 2015, if the economy grows the way we expect it to, we would certainly have to think about raising interest rates."
The economy is expected to grow by some 3.6% in 2014 as Belka said he prefers "to believe my own experts than those in Brussels or Paris."
NBP's latest inflation projection, published on Monday, March 10, showed that Poland's recovery can accelerate to 3.5-3.7% annual growth in 2014-2016, as investment growth jumps to 8.2% for a 2015 peak and individual consumption stabilizes above 3% beginning in 2015, while inflation holds below the 2.5% target to Q1 2016.