Minority on Polish Monetary Policy Council Call for Rate Cut


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By Martin M. Sobczyk

WARSAW--A minority of Polish central bankers believe an interest rate cut may be justified in the coming quarters, according to the minutes of the bank's September policy meeting published Thursday.

While a majority of the Monetary Policy Council voted to leave the main rate at 1.5%, the lowest on record, some members said a cut to borrowing costs could be considered if economic growth flags and consumer prices decline for longer than currently expected.

The minutes of Poland's MPC do not provide the names of the members and how they intend to vote in the future.

Some MPC members said that if the Polish economy accelerates and price inflation returns, possibly rising near 2.5% growth in the medium term, an interest rate increase should be administered. Those members also said that the most probable scenario is for Polish rates to remain unchanged for some time.

Poland's economy grew 3.1% in annual terms in the second quarter while consumer prices fell 0.8% in August.

Write to Martin M. Sobczyk at martin.sobczyk@wsj.com

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