Belka: QE may boost Polish złoty

Marek Belka, head of the central bank of Poland (NBP), said Friday that the Quantitative Easing program launched by the European Central Bank (ECB) may be a factor conducive towards strengthening of Polish currency. Belka expressed an opinion that the EBC program is groundbreaking. “We are not sure how effective the policy will be, but surely it is a breakthrough." "Albeit the EBC had been buying government bonds earlier, the Thursday’s decision means the EBC will be buying large volumes of bonds, similarly to QE programs by Japan, the UK or the US. We hope it will give boost to the European economy,” Belka told news agency PAP. Belka also stated that there is still a room to cut interest rates further. The decision will be taken in less than two weeks during the meeting of the Monetary Policy Council. Head of the NBP said however, that we have to keep in mind that the current interest rates are historically low. The EBC launched a bond-buying program on Thursday, which will pump hundreds of billions of euros into the euro zone.