Poland kept interest rates unchanged, with the focus turning to how quickly Governor Adam Glapinski may pivot to cuts after inflation eased from the highest level in more than a quarter century.
(Bloomberg) — Poland kept interest rates unchanged, with the focus turning to how quickly Governor Adam Glapinski may pivot to cuts after inflation eased from the highest level in more than a quarter century.
The central bank kept its benchmark rate at 6.75% for the seventh straight month on Wednesday, matching expectations of all 31 economists surveyed by Bloomberg.
Investors are betting on more than half a percentage point in cuts this year. The International Monetary Fund advised the policy makers to quash any discussion about easing and be ready to resume rate increases if inflation stays high.
Glapinski revived speculation last month by saying he “personally” hoped policy makers would be able to cut rates in the fourth quarter, after inflation slows to single digits in September. He will hold a news conference at 3 p.m. in Warsaw on Thursday.
Consumer prices rose 16.2% in March from a year earlier, their slowest pace since August. That was mainly due to the fading shock of the war in Ukraine on energy and food costs.
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