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Kazmierczak Would Increase Rates Only on `Dramatic' Polish Inflation Rise

Poland should increase interest rates “only if inflation grows dramatically, and nothing like that is happening,” Andrzej Kazmierczak, a member of the central bank’s Monetary Policy Council, said today in Warsaw.

Further appreciation of the zloty is “very likely” and that this prospect is “another reason to leave rates unchanged,” Kazmierczak said in a phone interview.

The comments come after the annual inflation rate rose to 2.8 percent in October from 2.5 percent in September, matching the median forecast of 15 economists surveyed by Bloomberg. Consumer prices rose 0.5 percent on the month.

Since the consumer price index was driven by supply factors that “cannot be affected by monetary policy” and core inflation is seen remaining steady, policy makers “should be very cautious in considering any interest rates changes,” Kazmierczak said.

The central bank left its benchmark rate unchanged at a record-low of 3.5 percent for a 16th month in October because of concern that higher rates may attract capital inflows that would strengthen the zloty, hurting exports and economic growth. The bank will keep rates steady at its next policy meeting Nov. 22- 23, according to nine of 12 economists surveyed by Bloomberg.

To contact the reporter on this story: Dorota Bartyzel in Warsaw at

To contact the editor responsible for this story: Willy Morris at

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