PM names flat interest rates ‘optimal scenario’
June 12, 2014
Poland's PM Donald Tusk
Keeping interest rates flat as inflation starts to rise towards 2015 seems an optimal scenario for Poland's monetary policy, PM Donald Tusk said at a press conference on Tuesday.
"It seems that if interest rates are kept at the same level and we reach 2015 with a slowly rising inflation, it may be an optimal scenario," Tusk said with a caveat that he did not want to interfere with the Monetary Policy Council (MPC).
"I think that all in all the MPC's actions are right . . . and I'm glad that the MPC in turn assesses the government's actions as not bad," the PM said.
Inflation is expected to slowly return to the desired growth rate in 2015, Tusk said.
At its June sitting Poland's Monetary Policy Council removed all suggestions of potential rate stability beyond end-Q3 from its statement, then moved at the press conference to suggestions that all options, including a rate cut or cuts, are open beyond that horizon.