Polish central banker claims rate cuts near end

25 June 2013

The weakening zloty could improve the Polish economy but a steep depreciation could end up posing a threat, according to Jerzy Hausner, a member of the central bank's rate-setting panel.

Reuters reports Mr Hausner, told the daily newspaper Rzeczpospolita that the bank's monetary easing policy was close to completion and would not be drawn out further when it does reach its end.

The country's central bank has implemented several measures to help the ailing economy, including reducing the key rate of interest by 200 basis points since November to the record low of 2.75 per cent.

Economists are expecting another cut in July, but believe it will be the last one in the current cycle.

Mr Hausner, who is one of the ten-strong Monetary Policy Council, said: "Zloty weakening could have a somewhat positive effect but a too-sudden depreciation could be very bad. Taking this into account we must be shifting towards a slightly different policy."

By Gary Cooper

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development