Poland should cut borrowing rate further says IMF
PR dla Zagranicy
Peter Gentle
17.05.2013 08:04
The International Monetary Fund (IMF) says that though it welcomes recent cuts in interest rates, more should follow “without delay” as Poland's growth rate slows to 1.2 percent in 2013.
“We welcome the cuts in policy interest rates since November, and urge the Monetary Policy Council to continue monetary easing without delay,” the IMF said in a statement released on Thursday.
The statement forecasts Poland's economic growth this year will be 1.2 percent, rising to 2.2 percent in 2014.
The Monetary Policy Council reduced rates by 25 basis points in May, and governor of the National Bank of Poland Marek Belka said he was not ruling out more cuts.
Though at a record low after a series of cuts, in real terms, Poland's borrowing rate is still high, says the IMF.
“With economic activity below potential, we expect inflation to remain below the target over the policy horizon,” the statement says.
“At the same time, real policy interest rates in Poland remain high, both historically and when compared with peers, and policy rates adjusted for country risk premia are among the highest in the region.” (pg)