Poland Shouldn’t Stress Rate Increase, Kazmierczak Tells Reuters

Poland’s central bank, which this month indicated rate increases are more probable than cuts, may tone down its rhetoric after the zloty gained and inflation slowed in January, said central banker Andrzej Kazmierczak said in an interview with Reuters.

“At this point, maybe we don’t have to highlight the need for monetary-policy tightening anymore, though this cannot be ruled out completely either,” Kazmierczak was quoted by Reuters today as saying. “It is difficult to imagine any easing in policy.”

The Narodowy Bank Polski has left its benchmark seven-day interest rate at 4.5 percent since June after raising borrowing costs 1 percentage point in four steps because inflation stayed above the central bank’s 2.5 percent target longer than expected. In comments following the Monetary Policy Council on Feb. 8, central bankers, including Andrzej Rzonca, Adam Glapinski and Zyta Gilowska, ruled out a rate cut.

To contact the reporter on this story: Dorota Bartyzel in Warsaw at dbartyzel@bloomberg.net

To contact the editor responsible for this story: Balazs Penz at bpenz@bloomberg.net