Poland would gain little from further interest rates cuts, be it on the side of GDP growth or inflation, Monetary Policy Council (MPC) member Jerzy Osiatynski said during a press conference following the October MPC sitting.
A potential further monetary loosening would “neither add to economic growth,” nor affect the price growth rate “in any significant way,” Osiatynski said.
“As we look into this, the effectiveness of such actions would not be significant either for GDP or price growth rate,” he added when asked to address his July rumination about potential room for another 25-50 bps in cuts.
In his July interview for PAP, Osiatynski mentioned an “intuition” that the arguments for cuts were strong and might be getting stronger. These included persistent deflation and doubts about the closing of the demand gap.
But other factors “beyond monetary policy” now seem of greater importance for Poland’s economy, Osiatynski now seems to believe.
Poland’s MPC held interest rates flat at the council sitting concluded Tuesday, fully in line with market expectations and its own policy vows. The council reiterated the bulk of its economic outlook.
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