Belka: Rates likely to stay flat until end 2014
Marek Belka, the president of the National Bank of Poland, believes that the Monetary Policy Council should keep interest rates on hold this year. However, hikes are likely in 2015, he told Bloomber Businessweek in an interview.
“A lot suggests, what is being articulated by some rate council members, that in principle rates should be expected to remain stable to the end of this year,” Belka said. “That would mean that in 2015, if the economy grows the way we expect it to, we would certainly have to think about raising interest rates.”
“And please don't ask me precisely when and by how much,” he added.
Belka expects Poland’s GDP to grow by some 3.6% in 2014. What may be worrying is not that the actual growth will be lower, but that it may come in higher and this may mean a hard landing, he said.
