Bratkowski: MPC should cut rates by 100 bp
18:21
According to Andrzej Bratkowski, one of the members of Monetary Policy Council (RPP) said in an interview with the Polish Press Agency that the risk of strengthening of złoty in following months increases the need to reduce interest rates by 100 basis points.
For the past few months Bratkowski has been trying to convince the Council to reduce interest rates, but there has been no majority to back his motions. In his opinion, “złoty is fundamentally undervalued and good state budget results make it even worse’. In this case, złoty may become stronger, he pointed out.
The last time RPP has reduced interest rates was in October 2014. Reference rate and rediscount rate were reduced by 50 basis points and reached 2 and 2.25 percent respectively. Lombard rate was reduced by 100 basis points to 3 percent and deposit rate remained on the same level.
The next meeting of the RPP is scheduled for 13-14th of January, although observers do not expect any significant changes to the rates.
