Observers of Poland’s Monetary Policy Council (RPP) are predicting the body won’t cut the country’s interest rates before March, as they see no economic factors that would justify change at the moment. Szymon Zajkowski of the mBank brokerage house says that the regulator needs to wait for a fresh insight on the country’s future inflation path. “Deflation is expected to continue in the coming months, but the Polish economy is strong, giving RPP mixed signals, which is not conductive in making any hasty decisions,” says Zajkowski. He says that the financial turmoil triggered by the Swiss national bank’s decision to end its intervention is another argument for caution.
The chief economist for BIZ Bank agrees, adding that despite previous predictions, the European Central Bank’s EQ program is not pushing RPP to cut interest rates. “As long as it does not lead to rapid appreciation of the Polish złoty, it’s irrelevant to RPP’s decision,” he adds.
