Latest news with #MonetaryPolicyCouncil
Bloomberg
4 days ago
- Business
- Bloomberg
Poland's Kotecki Says MPC Is Turning Cautious on Further Easing
Polish policymakers are turning increasingly cautious toward further interest-rate cuts due to growing political instability and concern over a bloated budget, central banker Ludwik Kotecki said. The Monetary Policy Council member told Bloomberg News that he's not certain if a majority on the 10-member panel will be found to reduce rates either in July or in September, potentially pushing back easing until the fourth quarter at the earliest.
Bloomberg
07-05-2025
- Business
- Bloomberg
Poland Cuts Rate for First Time Since 2023 With Election Looming
Poland's central bank cut interest rates for the first time since October 2023 as eastern Europe's biggest economy prepares to elect a new president in a little over a week's time. The Monetary Policy Council reduced the benchmark by 50 basis points to 5.25% on Wednesday, in line with the forecasts of most of the 34 economists surveyed by Bloomberg. Governor Adam Glapinski will brief reporters on Thursday.
Reuters
23-04-2025
- Business
- Reuters
Two Polish central bankers signal potential May rate cut
WARSAW, April 23 (Reuters) - Two Polish central bankers were quoted on Wednesday as saying there could be an interest cut in May, in the latest signs of an increasingly dovish stance from the Monetary Policy Council. Poland's main interest rate has been at 5.75% since October 2023, but with the outlook for inflation lower than previously thought a growing number of policymakers have been signalling that the cost of credit may soon fall. In an interview published on Wednesday, MPC member Gabriela Maslowska told Bloomberg News that there could be a 25-basis-point rate cut in May, depending on inflation data for April. "It can't be ruled out that interest rates will be cut in May," she was quoted as saying. "The CPI reading for April and especially the July projection will be crucial for the decision to cut interest rates in the coming months." Meanwhile, central banker Ludwik Kotecki was quoted as saying by state news agency PAP that the latest economic data in Poland supported a rate cut in May. "May is the moment when the Council should, in my opinion, make a decision, the first one, after a dozen or so months - because the last cut was in October 2023, and inflation has changed by over 50% since then," the MPC member said. "Considering that the indicators for February and March are not the best, and wage dynamics have been falling for another month, I see no arguments against lowering interest rates today." Wage growth in Poland slowed for a fourth month in a row in March and industrial output was lower than expected in data published on Tuesday, which analysts said could boost the case for cutting interest rates as soon as May. Data published on Wednesday showed that retail sales also fell in March for the second month in a row, in what economists said was another argument for a quick start to monetary policy easing. Kotecki repeated that in his opinion interest rates could be cut by 100 basis points in 2025.
Reuters
16-04-2025
- Business
- Reuters
Polish central banker Dabrowski says July a safe time to cut rates
WARSAW, April 16 (Reuters) - July is a very safe moment to cut interest rates in Poland, Monetary Policy Council (MPC) member Ireneusz Dabrowski said, although he did not rule out that the decision could be made earlier and added that wage data would be key. "The decision to cut rates may come sooner, but in my opinion July is a very safe moment. Any earlier carries a certain risk, but perhaps the Council will decide to do so and there will be a proposal on this matter," Dabrowski told Reuters. Poland's main interest rate has been at 5.75% since October 2023, but central bank governor Adam Glapinski has said this month that policy easing could come as soon as May due to a lower than previously expected outlook for inflation. Some other MPC members are also inclined to start the monetary policy easing cycle quickly, perhaps as early as next month. "I see that disinflation processes are faster than assumed in the March projection. However, I do not know if they are fast enough for this decision to happen in May. But undoubtedly, compared to the previous month, the Council's willingness to cut interest rates has increased," Dąbrowski said. Among the factors that increase the uncertainty of monetary policy, Dabrowski mentioned the impact of U.S. customs policy on the Polish economy, as well as the expectation that the government will decide to lift an energy price cap in the fourth quarter, which would affect inflation. The MPC member said that in his opinion wage data are key to making a decision on interest rate cuts. "If the inflation target is 2.5% and labor productivity is 3-4%, then the safe rate of wage growth is around 5-6%, and at the moment it is at an estimated level of around 8%, so we are close. We are waiting for this data," told Dabrowski. The council member also said that in his opinion, if the Monetary Policy Council decided to ease monetary policy, it should initially be an "adjustment" move. "Which does not rule out that (a cycle) could start later, but we will have to wait until the July projection to test this adjustment," told Dabrowski.
Bloomberg
03-04-2025
- Business
- Bloomberg
Poland's Central Bank Governor Sees Rate Cuts Coming Soon
Polish central bank Governor Adam Glapinski said policymakers may soon cut interest rates after adopting a 'dovish' stance in a shock about-face that sent the zloty and Warsaw-listed stocks tumbling. Speaking a day after the Monetary Policy Council left the benchmark at 5.75%, Glapinski said slower-than-expected inflation in the first quarter triggered a 'radical shift' in policymakers' outlook.
