Central Banks
Polish Central Banker Flags Rate Cuts Even as Inflation Soars
- Dabrowski says rates are well-calibrated to lower inflation
- ‘Frantic rate increases’ won’t help economy, Dabrowski says
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Poland’s central bank is likely to begin cutting interest rates late next year, with borrowing costs now at a sufficient level to bring inflation under control, policy maker Ireneusz Dabrowski said.
Even as inflation in Poland approaches 18% and other central bankers warn against easing off rate hikes, Dabrowski said in an interview that falling money supply, rising consumer deposits and weakening demand all point to abating price pressure. Investors are pricing in as much as half a percentage point of cuts a year from now, trading data show.