Poland central bank head says still in wait-and-see mode

05 Sep, 2010

Poland's central bank is in a wait-and-see mode regarding interest rates and its governor sees no clear signs of inflationary pressure, he said on Saturday. Poland's economy grew faster than expected in the second quarter, driven by stronger domestic demand that bodes well for its economic upturn and points to a rise in interest rates.
"We do not see clear signs of inflationary pressure," Marek Belka said at a conference in Romania's capital Bucharest. "We are still in a wait-and-see mode. Poland's government expects the central bank to raise its key interest rate by 25 basis points to 3.75 percent this year and the zloty to gradually appreciate in years to come, daily Rzeczpospolita said on Saturday. Another member of the country's monetary policy council told Reuters this week there was no need to hurry with monetary tightening.

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