Another rate cut in December?

Poland's central bank has cut interest rates on Wednesday and is set to possibly cut them again in December, the central bank's Monetary Policy Council (MPC) member Jan Czekaj signaled in an interview with TVN CNBC. Another member of the MPC, Andrzej Sławiński has said that another round of cuts is likely. He said that the easing cycle would feature a series of 25 basis-point reductions, however, it's uncertain whether rates will be cut in December.

Traditionally, rates have not been cut in Poland in December, but Czekaj said, "This used to be some kind of tradition but this is not an iron law. …This cannot be treated as an announcement that rates will fall in December, but it cannot be excluded."

Most analysts have expected the MPC to delay rate cuts until the first quarter of 2009.

Source: Reuters, TVN CNBC