A member of Poland’s interest-rate setting Monetary Policy Council (MPC) has said she expects neither cuts nor increases in the rates at the moment.
Gabriela Maslowska was speaking to Radio Lublin on January 12.
Last year, the MPC lowered rates twice, in September and October, bringing down the central bank’s reference rate to 5.75%.
“I think we have to be very cautious about cutting interest rates, first of all when it comes to talking about them at the moment,” she said.
Maslowska added that planned paid increases for teachers, which would come from the state budget, could affect inflation, now standing at 6.1%.
“Although it is estimated that this increase would slightly increase inflation – in the current year by 0.1%, only next year it would be 0.4%,” she continued.
She added that no decision should be made before the March economic projections.
“There are different projections and forecasts, but – in order to be more credible – we must, however, wait until March to provide information on what will happen in the second half of the year,” she said.
“I hope that we will move gradually to interest rate cuts, but it is difficult at the moment to indicate when that will be,” Maslowska concluded. (PAP/Business World Magazine)
