Polish MPC majority's stance points to autumn being key for rates, says c. bank governor
The approach of the majority of Poland's Monetary Policy Council indicates that autumn will be crucial for interest rates, Poland's central bank NBP governor Adam Glapinski told Thursday's press conference following the decision-making meeting held by the MPC on Wednesday. He added that the majority of the Council will favour cycle of the rate cuts.
"During the yesterday's discussion, most of the Council members talked about the July projection, that it will show what the situation is, it will collect all the data, that there will be more known about the transaction prices in energy companies (...)," Glapinski said.
"In July we will know more how the transaction prices will shape up. If it will be like it was for the previous two months then any decision is possible - this is what some Council members said," he added.
Poland's central bank governor pointed out that other members of the MPC stressed that it was necessary to be prudent and that the Council could come back to decisions in the autumn.
"There are rather decisions related to rate cuts that come into play, but theoretically any decision is possible - hikes too, if something dire were to happen in the economy," Glapinski said.
"(...) Some members of the Council say that maybe a lot more will be known already in July. I am presenting the stance of the majority of the Council," he added.
Poland's central bank governor continued that, based on the MPC members' statements, he concludes that if the Council decides to cut rates further, either in July or in the autumn, the majority will favour a cycle over a one-off adjustment.
"(...) from the statements of the members of the Council, I conclude that if we decide to cut rates further, whether in July or in the autumn, the majority will be in favour of the cycle," Glapinski said.
"That's why the cycle is convenient then, because the whole time it gives you the possibility to suspend the cycle, to accelerate, to increase the decision, as other central banks do," he added.
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