Chojna-Duch opts for sharp rate cut in October

The Monetary Policy Council (RPP) should cut rates by 50 basis points at its October sitting,  RPP member Elżbieta Chojna-Duch said in an interview for TVN 24 BiŚ. “This is not even the last moment, its a delay,” she said. “I think that interest rates should have been cut earlier.” In her opinion, Poland’s economy slowed down in May and June. “In September the situation became even more obvious.” “The council’s decision should also be supported by factors related to deflation, which is taking place since July, is getting deeper and will last for a while,” Chojna-Duch said. The 50 bps cut in just an initial proposal, she added. “After that we should wait and observe the situation in Ukraine, whether Russia opens its market to Polish goods and what world energy prices look like,” the central banker said.