🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

UPDATE 1-Polish cbank may keep rates flat in Apr-cbanker

Published 04/20/2009, 03:05 AM
Updated 04/20/2009, 03:08 AM
TGT
-

* Spike in inflation seen temporary

* Rates could fall as low as 3 pct

(Adds quotes)

WARSAW, April 20 (Reuters) - Poland's Monetary Policy Council (MPC) may need to pause this month in its policy of cutting interest rates because of a spike in inflation, a doveish member of the MPC said on Monday.

However, Stanislaw Owsiak also said rates could fall to 3 percent from the current 3.75 percent in the current easing cycle to help counter Poland's sharp economic slowdown.

"The information is a bit contradictory. On the one hand we have inflation at 3.6 percent so we are outside the target range (of 1.5-3.5 percent)... and this argument should be taken into account," Owsiak told TVN CNBC.

"I think we cannot exclude a pause in rate cuts... I cannot rule out a pause in April."

Owsiak, one of the most consistent supporters of monetary easing on the 10-strong panel, said a recent weakening in the zloty was a key reason behind a spike in inflation to 3.6 percent in March but he said its effects should dissipate soon.

"I think the zloty is likely to be strengthening... and there will be room for more rate cuts," Owsiak said, adding he could not rule out the main rate dropping to 3 percent.

The MPC has cut interest rates by 225 basis points since November as Polish industrial output has tumbled, unemployment has begun to creep higher and inflationary pressures have eased.

In a recent Reuters poll, a narrow majority of analysts said they expected a further 25 basis point rate cut in April. (Reporting by Patryk Wasilewski and Gabriela Baczynska)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.