Emerging-market stocks declined for the first time in five days as U.S. lawmakers remained deadlocked over extending the debt limit to avoid default, intensifying concern that global economic growth will falter.
The euro declined to a one-week low against the dollar after a gauge of German business confidence unexpectedly dropped in September, adding to concern the debt crisis is hindering the region’s economy.
Poland’s plan to increase the value- added tax next year will reduce consumption and boost inflation, complicating decisions for the central bank’s Monetary Policy Council, Zyta Gilowska , a member the interest-rate setting panel, told the bank’s news service, Obserwatorfinansowy.pl .
Poland shouldn’t accelerate interest-rate increases because inflation is being driven by global prices and tax increases while government budget cuts may hurt economic growth, central banker Zyta Gilowska said.
Poland’s government has been sustaining economic growth by “draining” the country’s reserves and “pumping” borrowed money into the economy, policy maker Zyta Gilowska said in an interview with the magazine “Uwazam, rze.”