The trouble with filling a hot seat

The future direction of Poland's monetary policy has been cast into uncertainty after Jan Sulmicki, the 61-year-old economics professor nominated by President Lech Kaczyński to take over as chief of Poland's central bank (NBP), withdrew his candidacy.

"I was slightly surprised by the professor's decision and I will now have to reflect on the next candidate. He was not the only one," President Kaczyński said in reaction to the news.

Sulmicki was seen as an uncontroversial pick who would likely be more dovish than his predecessor when it came to setting interest rates. The professor cited personal reasons for the withdrawal of his candidacy.

The move provoked surprise and uncertainty on the financial markets. "This is obviously a huge blow to the president and to the government and will further increase the uncertainty of the course of monetary policy in Poland," said Lars Christensen, an economist at Danske Bank in Copenhagen. "It's unbelievable. It happens rarely that a candidate quits after being nominated." said Jacek Wiśniewski, an economist at Raiffeisen Bank in Warsaw.

NBP president Leszek Balcerowicz's term ends on January 10, meaning a replacement must be found quickly. President Kaczyński said he would need time to mull over his next nomination, but officials at the President's office say he will present new candidates by Christmas at the latest.

Possible candidates for the post include Finance Minister Zyta Gilowska, who media sources say could have the inside track. That would create a vacancy which could potentially be filled by former PM Kazimierz Marcinkiewicz, who was recently defeated in Warsaw's mayoral election and has said he would consider rejoining the government. (Reuters)