Poland's interest rates are almost certain to be kept unchanged by the middle of 2014, while they are highly likely to remain flat until the end of 2014, deems member of the Monetary Policy Council (MPC) Adam Glapinski, seen as one of the "hawks" in the Council.
Glapinski went on to say that he is conservative and will be as unhurried with raising the rates as he was with lowering them. He argued that since economic growth is unlikely to exceed 2.5%, it is not strong enough to cause any risk in terms of inflation.
In the last few months, MPC continued to state in its monthly press release that interest rates should remain unchanged at least by the end of 2013. However, the National Bank of Poland's (NBP) governor Marek Belka recently said that his views are close to those central bankers who see Poland's interest rates remaining at a record low through at least H1 of 2014.
Over the entire cycle, the Council decreased interest rates by 2.25pps, in particular reducing the reference rate to the level of 2.5% in July of 2013, thus keeping this rate positive in real terms.
Bank economists now expect interest rates to remain flat for at least till the middle of 2014, but many of them point to September or October as the beginning of the policy tightening cycle.
Related Articles
Ukraine’s NovaPay launches European app for financial services with Polish partner
Ukrainian financial services group NovaPay has launched a European version of its mobile application, aimed at Ukrainians and EU residents, in partnership with Polish payment institution Quicko, ... more
Russian drones targeted Rzeszów airport hub, media claim
Russian drones, which breached Polish airspace in the early hours of September 10, might have been targeting the airport in Rzeszów, which is vital for the West’s military supplies to Ukraine, ... more
Non-performing loans hit historic low in CESEE, but early warning signs emerge, says EBRD
Non-performing loans (NPLs) in central, eastern and south-eastern Europe (CESEE) fell to their lowest levels since the global financial crisis in 2024, but early indicators suggest rising risks ... more
Most Read
-
Renewable capacity growth is faster than ever, but more acceleration needed to meet Paris 2030 goal, says IEA
1 year ago
-
Kyrgyzstan abandons attempt to rescue Russian climber trapped on icy summit of country’s highest mountain
23 days ago
-
BERTRAND: China after Communism, preparing for a post-CCP China
1 month ago
-
Hungarian economy faces weak growth, slow path to price stability, central bank report shows
2 months ago
-
UKRAINE REMONT: The battle to build: signs of recovery in Ukraine's construction industry
5 months ago