Polish c.bank leaves rates unchanged, as expected

Credit: REUTERS/Kacper Pempel

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WARSAW, Sept 8 (Reuters) - Poland's central bank left interest rates unchanged on Wednesday, keeping the cost of credit low to solidify the economic recovery from the COVID-19 pandemic despite inflation surging to a two-decade high.

Bets on a rate hike before the end of the year increased last week, when a flash estimate from the statistics office showed inflation rising to 5.4%, but in an interview published on Monday Central Bank Governor Adam Glapinski reiterated his view that it was still to risky to raise rates.

"The decision... is no surprise, especially after the interview of President Glapinski published on Monday, in which he clearly states that it is too early to reduce accommodation in monetary policy," said Piotr Bielski, director of the economic analysis department of Santander Bank Polska.

Poland's dovish stance contrasts with the Czech Republic and Hungary, where tightening cycles have already begun. In Romania, the central bank kept rates on hold in August.

Poland's main interest rate has been at a record low of 0.1% since May 2020. All 19 analysts in a Reuters poll expected rates to remain unchanged.

(Reporting by Alan Charlish, Pawel Florkiewicz and Anna Koper; Editing by Alex Richardson)

((alan.charlish@thomsonreuters.com; +48 22 104 25 27 ;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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