Low output to prompt rates cut?
Industrial output grew just 6.4 percent year on year in December, and was 2.7 percent lower than in November. Just hours before the GUS released the data, Economy Minister Jerzy Hausner was predicting double-digit figures. Some analysts are now saying that this could be the first sign of the detrimental effect of the robust złoty.
Analysts had predicted a growth of 13 percent in industrial output and an increase in producer prices of 6.4 percent. However, producer prices only managed a gain of 5.6 percent.
The central bank has kept interest rates on hold for four months, with a 'restrictive' policy bias-meaning rate hikes were still likely-after raising its main rate to 125 base points last summer to 6.5 percent. However, following a slow growth in consumer prices, Monetary Policy Council members are expected to change this bias to 'neutral' after March. (Reuters) L.M.
Analysts had predicted a growth of 13 percent in industrial output and an increase in producer prices of 6.4 percent. However, producer prices only managed a gain of 5.6 percent.
The central bank has kept interest rates on hold for four months, with a 'restrictive' policy bias-meaning rate hikes were still likely-after raising its main rate to 125 base points last summer to 6.5 percent. However, following a slow growth in consumer prices, Monetary Policy Council members are expected to change this bias to 'neutral' after March. (Reuters) L.M.
