Logo Polskiego Radia

Rostowski - Poland must cut interest rates further

PR dla Zagranicy
Peter Gentle 21.01.2013 10:59
Poland's finance minister is calling for a further cut in interest rates after three successive cuts to the borrowing rate.

Minister
Minister Rostowski: photo finance ministry press materials

“A reduction in interest rates would help in the fight against the economic downturn,” Finance Minister Jacek Rostowski has told the RMF FM radio station.

Chairman of the Poland's National Bank, Marek Belka said after the last rate cut that the “round of rate cuts is coming to an end,” but Rostowski says that there is room for even more cuts.

He said Monday morning that Poland still has the third highest level of interest rates in Europe, even though the Monetary Policy Council cut the borrowing rate by 0.25 basis points in January for the third consecutive month.

“Inflation is below target and I am convinced that the Monetary Policy Council should take this into account, and I think it will take into account.”

On growth prospects for 2013, Rostowski said that: “We expect the first half of this year will be weak but in the second half the economic situation will start to improve”.

Rostowski, finance minister in the centre-right Civic Platform/PSL coalition, has criticised the MPC for not cutting rates fast enough or early enough, as indicators for much of last year showed that Poland's GDP growth was slowing after a robust performance for much of the last few years in comparison to other EU economies. (pg)

Print
Copyright © Polskie Radio S.A About Us Contact Us