Poland Said to Plan Allowing Multiple Terms for MPC Members

Poland’s government is working on revising the central bank’s charter to allow members of the rate-setting Monetary Policy Council to serve more than a single six-year term, according to two people familiar with the plans.

The plans don’t envisage changing the number of MPC members or the length of their terms, said the people, who asked not to be named because the information isn’t public.

The central bank’s press office declined to comment when contacted by phone today. Wieslawa Drozdz, a spokeswoman for the Finance Ministry, didn’t have an immediate comment when contacted by Bloomberg News by phone and didn’t reply to an e-mail seeking comment.

“It seems quite a reasonable change,” Jaroslaw Janecki, chief economist at Societe Generale SA in Warsaw, said by phone. “Another term would simply allow using the knowledge and experience of some of the council members for longer, with clear benefits to monetary policy.”

The Monetary Policy Council, which sets official borrowing costs, has 10 members, with three selected by the lower house of parliament, three by the upper house, three named by the president and the central bank governor serving as chairman and casting the deciding vote.

The council’s current term expires in 2016.