Economists believe interest rate cut likely this month with more to follow

The National Bank of Poland is expected to cut interest rates by 25 base points this month, as inflation in January hit a new low of 0.6% y-o-y and there are signs that the economy appears to be escaping from a two-year slowdown. Out of 20 analysts polled by Reuters on Tuesday, 16 expected the Monetary Policy Council to cut the main money market rate to 6.25% at its two-day meeting ending February 26, while four expected no move. Of those forecasting an ease, one analyst expected no further reductions this year while others saw further cuts ranging from 25 to 100 base points by year's end. Interest rates have been coming down since peaking at 19% two years ago. "The economic rebound may not come anytime soon, especially if we look at global data. The central bank did not point to any supply shocks, so we should see a cut," said Marcin Mrowiec, an analyst at bank BPH-PBK. (Reuters) J.K.