Poland may need to raise rates in early 2018 – Gatnar

Poland may need to raise interest rates as soon as early 2018 because of risks to the inflation outlook or if real interest rates stay below zero percent for too long, member of the Poland’s Central Bank (NBP) and the Monetary Policy Council (RPP), Eugeniusz Gatnar told Parkiet daily.

According to Gatnar, the inflation may reach the central bank’s target of an annual 2.5 percent faster than by the end of 2019 as envisioned in the bank’s recent analysis, prompting a need to increase rates. Poland had the benchmark interest rate at an all-time low of 1.50 percent since March 2015.

“I’m concerned about the consequences of real interest rates staying negative for too long. We cannot allow a decimation of Polish people’s savings, which are not big as they are,” Gatnar added.

According to NBP head Adam Glapiński, interest rates should remain stable until the end of 2018.

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