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Reuters
4 days ago
- Business
- Reuters
Polish c.banker Litwiniuk: total of 100-125 bps of cuts possible this year
WARSAW, June 6 (Reuters) - Poland's Monetary Policy Council could return to discussions about rate cuts in July or September, central banker Przemyslaw Litwiniuk told TOK FM on Friday, adding that there may still be a total of 100-125 basis points of cuts this year. However, he said that due to certain risks regarding the path of disinflation the MPC needs to be cautious. The central bank left its main interest rate unchanged at 5.25% on Wednesday, as expected, saying that the current level was conducive to achieving its inflation target. "A different decision could suggest that we are in a cycle of cuts. However, due to certain risks that accompanied the formation of the disinflation path, we should approach this issue with caution," Litwiniuk said. "This does not mean that the Council will not return in July or September to the decision to lower interest rates." Among the uncertainty factors, Litwiniuk mentioned wage dynamics, which remain high and pose a "significant risk" to price stability. He also mentioned the development of energy prices at the end of this year and the risks associated with the government's loose fiscal policy. "I believe that the scenario of cutting interest rates in 2025 by a total of 100-125 basis points remains valid, but its hasty implementation could create risks at the end of the impact horizon, i.e. next year, when we would like to see inflation at the (inflation) target," the MPC member said. In May, the National Bank of Poland cut its benchmark rate by 50 basis points, in its first monetary easing since October 2023. Inflation slowed down to 4.1% in May, but remained outside of the central bank's inflation target range between 1.5% and 3.5%. The Governor of the National Bank of Poland (NBP) Adam Glapinski said on Thursday that the bank will not commit to a future path for interest rates for now because of economic uncertainty. Ludwik Kotecki, another member of the Monetary Policy Council, told Bloomberg that he still supports cutting rates in July or September and that a total of 50 basis points of additional easing this year would be "optimal". However, he added that he was not sure whether the MPC would find a majority to support such a scenario, and that central bankers were more cautious due to growing political instability and concern over a bloated budget.
Times of Oman
7 days ago
- Business
- Times of Oman
Central Bank gold buying cools in April, marking second straight month of slower growth
New Delhi: Globally, central bank gold buying experienced a slowdown in April, according to the latest data from the World Gold Council (WGC). The WGC indicates that central banks added a net of 12 tonnes to their reserves during the month. This figure represents a 12% decrease compared to the previous month's purchases and falls below the 12-month average of 28 tonnes. This deceleration in net purchases marks the second consecutive month where the rate of accumulation has slowed. Analysts suggest that this trend could be partly attributed to the significant appreciation in the price of gold observed since the beginning of the year, with gold reaching multiple record highs in recent months. While WGC "still expect overall buying to continue, given that the economic and geopolitical outlook remains highly uncertain." The World Gold Council's report highlights that the National Bank of Poland continued to be a significant player in the market, remaining the leading buyer both in April and for the year-to-date. Additionally, the Reserve Bank of India left its gold reserves unchanged at 880t and provided an update on its gold storage arrangements. On the other hand, several African central banks are exploring the possibility of increasing their gold holdings. The bank of Namibia, at the start of May, have announced plans to add gold with the aim of increasing it to 3% of total reserves. Similarly, the National Bank of Rwanda also announced during the month that it intends to build gold reserves. Gold retreated on Tuesday after approaching a four-week peak earlier in the day, pressured by a modest dollar recovery and profit-taking, as investors stayed wary amid unpredictable U.S. trade policies. On the physical demand side, according to a report by ICRA, domestic gold jewellery consumption in India is projected to expand by a significant 12-14 per cent in value terms in fiscal year 2026.
See - Sada Elbalad
7 days ago
- Business
- See - Sada Elbalad
Central Banks Slow Down Gold Purchases in April as Poland Continues to Lead
Waleed Farouk Data from the World Gold Council shows that central banks around the world added a net total of only 12 tonnes of gold to their reserves in April. This marks the second consecutive month of slowing purchases, down 12% from March, and well below the 12-month average monthly purchase of 28 tonnes. The report suggests that this slowdown may partly be due to the sharp rise in gold prices since the start of the year, prompting some banks to temporarily scale back purchases, even though central bank decisions are usually based on long-term strategic considerations. Poland Remains Top Buyer, with China and Turkey Among Key Additions Notable changes in central bank gold reserves during April included: Poland: The National Bank of Poland added 12 tonnes, raising its reserves to 509 tonnes—surpassing the European Central Bank's holdings of 507 tonnes. Since the beginning of the year, Poland has increased its reserves by 61 tonnes. Czech Republic: Continued its buying streak by adding 3 tonnes, marking the 26th consecutive month of purchases. China: Added 2 tonnes in April, bringing its total purchases for 2025 to 15 tonnes and its overall reserves to 2,294 tonnes. Turkey: Increased its gold reserves by 2 tonnes, reaching a total of 626 tonnes. Kyrgyzstan: Made its first purchase since December, adding 2 tonnes. However, it remains a net seller for the year, with total sales amounting to 2 tonnes. Kazakhstan and Jordan: Each added around 1 tonne to their reserves. Uzbekistan: Sold 11 tonnes in April, marking the third consecutive month of sales. Its total gold sales for the year now stand at 26 tonnes. India Updates Reserve Data and Increases Domestic Holdings India kept its gold reserves unchanged at 880 tonnes. However, in its semi-annual report, it clarified that 512 tonnes (58%) of those reserves are now stored domestically, compared to 510 tonnes (60%) six months ago. This reflects a broader effort by the Reserve Bank of India to enhance local storage, up from just 38% two years ago. Notable Moves by African Central Banks Toward Gold Several African central banks have announced plans to strengthen their gold reserves, including: Namibia: Plans to raise gold's share of total reserves to 3% for the first time. Rwanda: Approved the start of gold purchases beginning in July. Uganda: Announced it will use gold from artisanal mining to boost reserves and meet future financial obligations. Madagascar: Plans to purchase 4 tonnes as part of a strategy to expand its reserves and regulate gold exports. Kenya: Is considering adding gold to its reserves as a diversification measure, though no timeline has been set. read more CBE: Deposits in Local Currency Hit EGP 5.25 Trillion Morocco Plans to Spend $1 Billion to Mitigate Drought Effect Gov't Approves Final Version of State Ownership Policy Document Egypt's Economy Expected to Grow 5% by the end of 2022/23- Minister Qatar Agrees to Supply Germany with LNG for 15 Years Business Oil Prices Descend amid Anticipation of Additional US Strategic Petroleum Reserves Business Suez Canal Records $704 Million, Historically Highest Monthly Revenue Business Egypt's Stock Exchange Earns EGP 4.9 Billion on Tuesday Business Wheat delivery season commences on April 15 News Australia Fines Telegram $600,000 Over Terrorism, Child Abuse Content News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Sports Neymar Announced for Brazil's Preliminary List for 2026 FIFA World Cup Qualifiers News Prime Minister Moustafa Madbouly Inaugurates Two Indian Companies Arts & Culture New Archaeological Discovery from 26th Dynasty Uncovered in Karnak Temple Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War Arts & Culture Zahi Hawass: Claims of Columns Beneath the Pyramid of Khafre Are Lies News Flights suspended at Port Sudan Airport after Drone Attacks News Shell Unveils Cost-Cutting, LNG Growth Plan
Reuters
04-04-2025
- Business
- Reuters
Polish central banker Kotecki expects May rate cut
WARSAW, April 4 (Reuters) - It is highly likely the central bank of Poland will cut rates in May and that this year's reduction in the cost of credit could reach 50-100 basis points, central banker Ludwik Kotecki told private broadcaster TOK FM on Friday. The National Bank of Poland has kept its main interest rate at 5.75% since October 2023. However, on Wednesday, NBP Governor Adam Glapiński abandoned his previously hawkish views and did not rule out cutting interest rates as early as May. "It seems that it is very, very, very possible. And the argument that will prevail will of course be the March data on the economy (will be published in April)," Kotecki said. "I have been saying for months that doves hatch from these hawk's eggs, and they did hatch ... And there are quite a lot of these doves in this council." Kotecki maintained his position that this year the scale of interest rate cuts in 2025 could amount to 50-100 basis points, and next year they could fall by another 100 basis points. "This economy needs interest rate cuts," Kotecki said. "The situation is better from the point of view of inflation and yet weaker from the point of view of the real economy. Therefore, there are strong arguments to start talking about these cuts, because 5.75% (the main interest rate) with such data is clearly too much." The Monetary Policy Council member also said the Polish economy may not suffer any direct consequences initially from the introduction of new customs tariffs by the U.S., but their indirect effects may become visible next year.
Reuters
01-04-2025
- Business
- Reuters
Polish opposition presidential candidate Nawrock calls for rate cut
WARSAW, April 1 (Reuters) - The presidential candidate supported by Poland's largest opposition party, Law and Justice (PiS), has joined other election hopefuls in urging the central bank to cut interest rates, partly to bring down borrowing costs for consumers. "Poles must finally get lower loan instalments. That is why I am calling on the Monetary Policy Council to lower interest rates. Thanks to this decision, millions of borrowers will breathe a sigh of relief," Karol Nawrock, who is backed by the nationalist PiS, said in a video on X on Tuesday, which was verified by Reuters. The cost of credit, which has remained unchanged since October 2023, has become a prominent topic in the campaign for the presidential election, the first round of which is scheduled for May 18, with a run-off vote likely on June 1. The frontrunner in the race, Rafal Trzaskowski, who represents Prime Minister Donald Tusk's Civic Coalition (KO), has said repeatedly that borrowing costs should fall. Szymon Holownia, speaker of the lower house of parliament and the centre-right Third Way candidate, has also called for interest rate cuts. The governor of the National Bank of Poland (NBP) Adam Glapinski, who was appointed by PiS when they were in power, reiterated last week that Poland's elevated rate of inflation left no space for policy easing. NBP Vice President Marta Kightley told the news portal last week that politicians' appeals for interest rate cuts, while inflation is rising, would expose Poles to a risk of lasting high inflation. She also said the central bank was independent. Annual inflation in March was 4.9%, according to a flash estimate from the statistics office, unchanged from February and well above the upper limit of the central bank's inflation target of 1.5-3.5%. Still, some members of the monetary policy committee said easing of policy may begin in the second half, after publication of the central bank's inflation projection in July. The committee will announce its decision on Wednesday, but none of the analysts surveyed by Reuters expects an interest rate cut in April. The National Bank of Poland has held its main interest rate at 5.75% since October 2023.
