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Governor of the National Bank of Poland Adam Glapinski said he hoped the first interest rate cut would be possible at the end of the year, but it will depend on how much inflation eases.
After the meeting of the Monetary Policy Council in April, Glapinski said that the MPC will cut interest rates when it is certain that inflation is heading towards its target, adding that it has not officially ended its tightening cycle.
Poland's main interest rate has been at 6.75% since September.
"I hope that what economists participating in the recent survey of Obserwator Finansowy predict will happen, and also what is consistent with the predictions of financial markets, i.e. that at the end of the year the first interest rate cut will be possible," - Glapinski said in an interview with Gazeta Polska weekly.
He said that it would depend on whether inflation would slow at the pace predicted by the central bank's projection, and that "will depend on many factors."
"Therefore, this is not a promise, because everything will depend on inflation and the economic situation," Glapinski said.
Inflation was 14.7% in April according to a flash estimate from the statistics office, compared with 16.1% in March. The NBP targets inflation of 1.5% to 3.5%. (Reporting by Pawel Florkiewicz; Editing by Jacqueline Wong)