19:36 16 March 2024
When might the MPC start cutting interest rates?
The most likely scenario for monetary policy remains the stabilization of interest rates until the end of this year, assessed Prof. Cezary Kochalski, a member of the Monetary Policy Council (MPC) reiterating his position first expressed in a conversation with the agency in November last year. According to him, March 2025 could likely be the moment to start discussions on interest rate cuts, under conditions when the Council will have the so-called March projection, from which a picture of sustained taming of core inflation would have to emerge.
At the same time, the Council member did not categorically rule out the discussion of interest rate cuts at the end of this year but assigned a low probability to this scenario. It could only materialize in the case of a significant economic downturn.
