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
Copying, publishing, announcing any information from the News.lt portal without written permission of News.lt editorial office is prohibited.

Facebook Comments

New comment


Captcha

Associated articles

The most popular articles

Financial services: Commission adopts additional legislative proposals to strengthen financial supervision in Europe

The European Commission has adopted additional legislative proposals today to further strengthen financial supervision in Europe. more »

Dealing with derivatives

The EU has announced plans to regulate the market for derivatives – complex financial products that helped trigger the financial crisis. more »

Milk price crisis: Parliament gives go ahead to new measures

New proposals to help EU farmers through the milk price crisis were backed by Parliament on Thursday. more »

JEREMIE & JESSICA: Innovative financial instruments help regions and cities to overcome their investment needs

The European Commission and the European Investment Bank (EIB) Group are organising a conference in Brussels on 22 and 23 October to further promote two initiatives designed to increase the use of financial engineering instruments in the framework of cohesion policy. more »

Construction of Finnfoam’s thermal insulation production plant started

The biggest thermal insulation production manufacturer in Finland “Finnfoam” has started the construction of a thermal insulation production plant in Kaunas FEZ. more »

EIB supports Hungary with EUR 350 million

The European Investment Bank (EIB) is providing two loans in Hungary. more »

European Commission, International Financial Institutions and EU Member States agree Western Balkans Investment Framework

Key Western Balkan projects to benefit from new funding EU, IFI financing to focus on infrastructure, SMEs and energy efficiency. more »

Lithuania, Belarus and China will develop East-West transport corridor

Lithuania, Belarus and China will cooperate in the development of the initiative of the East-West transport corridor. more »

Bank SNORAS will provide preferential credits to farmers and agricultural companies

On October this year AB Bank SNORAS will provide preferential UAB “Guarantee Fund of Agricultural Loans ” purpose loans to farmers and companies, which scope of activity is economic activity and processing of agricultural production. more »

Car workers in Austria to get help from EU Globalisation Fund

The European Commission has today approved an application from Austria for assistance under the European Globalisation Adjustment Fund (EGF). more »