Poland may yet have room for a small interest rate cut, but may have to wait for it until January-February 2016, Finance Minister Pawel Szalamacha told the weekend issue of the paper Gazeta Polska Codziennie.
“It seems that there is yet room for a small reduction of interest rates,” Szalamacha said. “Maybe it will be necessary to wait with the move until January, February 2016.”
Poland currently sees no signs of a potential reversal of the deflationary trend of the past months that “eventually surprised not only NBP but also many economic circles,” he noted.
“Indicators do not show it, for example, the crude price has no upward tendency,” Szalamacha said.
Poland’s Monetary Policy Council has held rates unchanged for eight months now and heads into the last several months for the current line-up in lock step with the policy vow it issued back in March for stable rates to end-term.
Eight of the MPC’s nine regular members end their term in early 2016, followed by the NBP chief Marek Belka in mid-2016 and a final member in late 2019. Ahead of the elections, at least one policy voice within now-governing party PiS had said room for rate cuts existed and that proclivity to cut could be a litmus test for candidates.
jba/ dan/ mie/ mbn/