Polish Rift Over Easing Deepens as Bratkowski Berates Policy

Poland’s dispute over the right policy response to counter unprecedented deflation escalated as Andrzej Bratkowski lambasted fellow central bankers for acting “irrationally” and censoring his views advocating more easing.

The arguments made in support of no change in the benchmark interest rate at meetings in November and this month “show the prospect of cutting borrowing costs to a level that would have seemed unimaginable 10 years ago has terrified my colleagues,” Bratkowski said on his website yesterday. The 10-person panel is breaking the central bank law by refusing to support the government’s economic policy, he said.