Poland's rate cut in May certain, MPC to rather discuss its scale and cycle, says member
In May, Poland's Monetary Policy Council will not discuss whether to cut interest rates, the discussion will rather be about by how much to cut rates and whether this will be the beginning of a cycle or a one-off move, the MPC member Ludwik Kotecki told an interview with the Polish Radio. According to him, by the end of the year, rates could fall by 100 basis points.
"One can no longer pretend, it looks like in May the Council will not discuss whether to cut rates but only two things, the scale of the May cut and whether it will be a one-off adjustment or the beginning of a cycle," he said.
"If it's a one-off adjustment, then there will be a larger cut, and if it's the start of a cycle, then a smaller step," he added.
Currently, Kotecki would be in favour of a cycle of cuts.
"As of today, it looks like I would cautiously start thinking about a cycle - hence, I would anticipate a few cuts, programme a path of reductions and, depending on the data, repeat them in the following months," he said.
According to the MPC member, a 100 basis points cut would be possible throughout 2025.
"I was talking about a 50-100 basis point cut scenario, I would try to get to those 100 basis points by the end of this year," he said.
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