Poland shouldn’t rush to lower borrowing costs as the country needs to maintain positive real interest rates to boost banking deposits and protect the zloty from slippage, Andrzej Kazmierczak, a member of the Monetary Policy Council, said in an interview in Warsaw yesterday.
Poland should avoid cutting interest rates next month as the risk of weakening the currency and triggering capital outflows outweighs any benefit to the economy, central bank policy maker Andrzej Kazmierczak said.
Poland should increase interest rates “only if inflation grows dramatically, and nothing like that is happening,” Andrzej Kazmierczak , a member of the central bank’s Monetary Policy Council, said today in Warsaw.
It’s too early for Poland to relax monetary policies because curbing inflation to the central bank’s 2.5 percent target has an overriding priority and all other considerations are “secondary,” Andrzej Kazmierczak of the Monetary Policy Council said today in Warsaw.
Traders who anticipated lower interest rates in developing nations are reversing course as prospects for reduced Federal Reserve economic stimulus sparks the worst rout in emerging-market currencies since 2001.
Poland’s central bank should keep its tightening bias in monetary policy until the “negative processes” that are strengthening inflation subside, Andrzej Kazmierczak, a member of the rate-setting Monetary Policy Council, told the PAP newswire today.
Hungary’s central bank cut its main interest rate to a record low and pledged “increased caution” as policy makers looked past a market rout sparked by the U.S. Federal Reserve saying it may phase out stimulus.