Mateusz Szczurek News
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Poland’s economy slowed less than economists forecast in the fourth quarter as exports helped offset weakening consumer spending, taming arguments for more interest-rate cuts.
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The zloty hit a six-week high and yields on two-year government bonds jumped after fourth-quarter economic growth rose more than expected, curbing the need for further interest rate cuts.
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Poland’s industrial output grew at a faster annual rate in November as Germany’s accelerating recovery boosted demand for exports.
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Poland’s central bank shouldn’t leave monetary policy “static for too long,” central banker Zyta Gilowska said, joining other policy makers in indicating interest rates may be increased later this year.
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For the first time ever, Poland’s borrowing costs in euros fell below the Czech Republic’s as investors favor Prime Minister Donald Tusk’s focus on preserving growth over strict austerity measures.
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Romanian Prime Minister Victor Ponta’s ruling coalition is set to take the first step toward ousting President Traian Basescu as the jockeying for power between the country’s rival political camps intensifies.
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Romania’s leu remained steady after Moody’s Investors Service cut the outlook on the country’s rating to negative from stable, citing ties with the euro-area amid its sovereign debt crisis.
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Marek Belka ’s chances of being confirmed as Poland’s next central bank governor may fall victim to politics as the country’s four main parties jockey for advantage in presidential elections later this month.
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Mateusz Szczurek , chief economist at ING Bank Slaski SA in Warsaw, comments on the consequences of Poland’s higher-than-expected inflation data.
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Polish central bank Governor Marek Belka signaled he’s prepared to wait before raising interest rates to avoid the risk of having to reverse the move should the economy slow.
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