IMF sees rooms for further monetary policy loosening in Poland.

By bne IntelliNews November 19, 2012
The International Monetary Fund (IMF) welcomes the recent cut in the policy interest rate and see room to continue the monetary easing cycle. With the economy slowing and inflation pressures receding, further cuts in the policy rate are already clearly warranted. In the event of a sharper deterioration in economic conditions than currently anticipated, and given the limited fiscal space, additional easing would be required, according to IMF's statement issued at the end of its mission to Poland. The Monetary Policy Council (MPC) lowered interest rates by 25bps across the board (to 4.5% in the case of the key reference rate) in November and hinted that further loosening may take place already in November. After this decision, bank economists have stuck to their expectations of policy loosening to the extend of 75-100bps in total spanning till March-June of 2013.

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