Polish Central Banker: No Reason for Imminent Rate Cuts

By Dow Jones Business News, 
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By Patryk Wasilewski

WARSAW--Poland's rates panel has no reason to deliver an interest rate cut soon, said one of the panel's members Andrzej Kazmierczak on Wednesday.

He made the comment after the nation's statistics office said retail sales were much lower than expected in June, growing only 1.2% in annual terms.

Mr. Kazmierczak said the panel shouldn't base its decisions on this type of data occurring regularly and should instead wait to see if Poland's growth will pick up.

Another rates panel member, Jerzy Osiatynski, said on Wednesday he expects the Polish economy to grow slower in the second and third quarter than in the first, when it expanded 3.4% in annual terms. He said he hoped the slowdown is going to be temporary.

Poland's main rate is at 2.5%, a record low, with the rates panel this month reinstating an informal neutral bias; after a period of expectation that it would eventually start a tightening cycle.

The central bank chief, Marek Belka, said Wednesday that Poland's interest rates are at a relatively high level despite consumer price inflation near zero because of the central bank's intention to keep economic growth balanced and prevent the buildup of asset bubbles.

Write to Patryk Wasilewski at patryk.wasilewski@wsj.com


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