Belka: deflation will end in November; Nazi gold train a hoax

The head of the Central Bank, Marek Belka, said on Tuesday that it is likely that the Monetary Policy Council (RPP) will keep interest rates unchanged until the end of the year. The governor of the central bank also said that he expects that deflation will end in November.

Marek Belka expressed his concern that the adoption of the law on FX mortgage loans conversion in the form passed by the Sejm will pose a threat to the stability of the banking system. "Sudden conversion of these loans would result in a signifcant weakening of the zloty, and hence significant increase in FX loan servicing costs."

When asked if the gold found in the alleged Nazi gold train could add to the bank's reserves, Belka said: "I think nobody (at the central bank) even thought to devote a second to this issue. This is some kind of hoax."