Polish central bank Governor Marek Belka signaled that the end of monetary easing may be nearing after policy makers cut borrowing costs to a record low as the economy grapples with its worst slowdown in four years.
Poland’s central bank should reduce its benchmark interest rate by as much as 1 percentage point from a record-low 3 percent as prospects for a quick recovery wither, policy maker Andrzej Bratkowski said late yesterday.
Polish retail sales unexpectedly fell in April, prompting central bank policy maker Elzbieta Chojna- Duch to call for a “cautious” interest-rate cut next month as prospects for prompt economic recovery fade.
The yield on Poland’s 10-year bonds fell to a record low, making April the best month for the notes since November 2008, after policy maker Jerzy Hausner said the central bank will consider cutting rates further.
Polish government bond yields plunged to record lows after the nation’s industrial output dropped more than expected in March, spurring speculation of more monetary easing to bolster a slowing economy.
Polish government bond yields plunged to record lows after a Monetary Policy Council member signaled the need for further rate cuts to bolster the economy and wages grew less than predicted by economists last month.