Poland’s central bank has plenty of time to plot its next move after pledging to keep borrowing costs at a record low until mid-2014 as the economy recovers without stoking inflation pressure, Governor Marek Belka said.
Poland’s central bank will probably cut rates for a third month in January as a “deep” economic slowdown threatens to push the inflation rate below the bank’s tolerance limit, policy maker Jerzy Hausner said.
Polish borrowing costs may rise if the inflation rate takes longer to return to the central bank’s target than policy makers expected, said Jerzy Hausner, a member of the rate-setting Monetary Policy Council.
It’s too early to assume that Poland is finished with interest-rate increases, Jerzy Hausner of the central bank’s Monetary Policy Council was quoted today as saying in an interview in Gazeta Wyborcza.
Poland needs to narrow its budget deficit and raise interest rates at the same time to avoid a loss of investor confidence that could trigger a “drastic” weakening of the zloty and a surge in inflation, Jerzy Hausner of the central bank’s Monetary Policy Council wrote in an article published in Rzeczpospolita newspaper today.