Poland pulling out of deflation slower than expected, but faces no need to adjust rate policy

Poland will move into positive inflation at a still slower pace than anticipated, putting Poland in the black at the turn of the year, but nothing yet merits any swerve from the MPC’s rate holding ways, MPC member Elzbieta Chojna-Duch told reporters.

“Deflation will be subsiding,” but at a slower pace than previously expected, Chojna-Duch said. “The CPI reading should turn positive at the turn of the year.”

The council stands firm by its policy freeze.

“The Council maintains its previous stance that there are no sufficient grounds for tightening or loosening monetary policy,” she said.

Poland’s annual deflation deepened unexpectedly in September to -0.8% from -0.6% in August, a flash reading suggested. Poland will publish the final tally on September prices today.

jba/ ami/ gty

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