Polish official says rates won't be slashed

Published: 1 March 2005 y., Tuesday
A senior official from Poland's central bank warned markets Monday expectations for sharp falls in interest rates this year were misplaced. The Deputy Governor of the central bank, Krzysztof Rybinski, said the inflation target of 2.5 percent year-on-year, plus or minus one percentage point, would be jeopardized if sharp cuts were made. "Cuts of 150 basis points would cause the inflation prognoses to point above target," Rybinski was quoted as saying by the PAP news agency. Rybinski said the inflation rate would probably fall from the current level of 4 percent to near target levels by the middle of the year and would comfortably be achieved and maintained in the next two to three years. Last week the central bank left key rates unchanged at 6.5 percent but changed its monetary bias to "easing". Such moves in the policy bias usually herald interest rate cuts in the near or medium term.
Šaltinis: UPI
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