Chojna-Duch: Rates should be cut by 25 bps

Interest rates should be reduced by a further 25 basis points, Monetary Policy Council (RPP) member Elżbieta Chojna-Duch said in an interview with business news station TVN24 Biznes i Świat. In the case of long-term deflation, the RPP should even cut rates by 50 points, the central banker said. Chojna-Duch however stressed that possible deflation will only be temporary. “After four months, prices will go slightly up, but they will still remain at a very low level, below the National Bank of Poland’s 2.5-percent target,” she said.