The National Bank of Poland’s interest rates could only be cut if economic activity slows down significantly or is strongly expected to do so, central bank head Marek Belka told Dziennik Gazeta Prawna in an interview published on Monday.
Another reason to cut would be a sudden appreciation of the złoty, e.g. as a result of other central banks’ activity, Belka said.
Deflation would not be a reason, the central banker said, because it would not be harmful. “It would be strange if the central bank would want to reverse price cuts,” he added.