WARSAW: Poland's central bank should keep interest rates at record lows until the end of the first quarter of next year because of weak signs of an economic recovery coupled with low inflation, one of its policymaker said.
The central bank nearly halved its main rate to 2.5 percent in an easing cycle that concluded in July and has said it was likely to keep rates unchanged until at least the end of the year to give nascent recovery time to gather steam.
"We have some signs of an economic recovery, but lazy ones. I don't expect a significant rise in prices," said Adam Glapinski, a member of the central bank's Monetary Policy Council.
"There is a great likelihood that rates won't change for the rest of the year and there is a high probability that they also won't change in the first quarter," he told reporters.
Glapinski had opposed most of the recent spate of rate cuts.
Economists said the likelihood that rates would remain at current levels rose after President Bronislaw Komorowski accepted the resignation of Zyta Gilowska from the MPC on Friday.
Komorowski has three months to pick a replacement and is expected to pick a more dovish policymaker than Gilowska, who missed two votes and opposed all but one of the remaining cuts in the recent easing cycle.
Comments
Comments are closed.