off-the-wire

UPDATE 1-Polish central bank governor hopes to cut rates in fourth quarter 

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Adds further quotes) WARSAW, March 9 (Reuters) - The National Bank of Poland could cut interest rates in the fourth quarter of 2023, Poland's central bank governor said on Thursday, adding that he expected inflation to fall into single digits around September. While Adam Glapinski said he was still not officially closing a cycle of interest rate hikes that started in 2021 due to persistent inflation risks, market focus has been firmly on when the cost of credit could start to fall. "I hope that it will be possible to cut rates in the final
quarter (of this year), but this is my opinion," Adam Glapinski told a news conference. On Wednesday, Poland's central bank slightly lowered its inflation forecasts for the coming three years, reinforcing expectations that interest rates will remain at current levels after it left them unchanged for a sixth consecutive month.


Glapinski said he expected inflation would peak in February at around 18.5% and would then fall to single digits at the turn of August and September. "I'm assuming it will be a little over 7% in November and with what I'm hoping for in the international markets for commodity prices, we'll go down to between 6% and 7%," he said. He added the drop in inflation would be accompanied by a slowdown in growth, but that he did not expect a recession in Poland.


(Reporting by Pawel Florkiewicz, Anna Koper, Anna Wlodarczak-Semczuk, Alan Charlish; Editing by Alison Williams)

Messaging: warsaw.newsroom.reuters.com@thomsonreuters.net))
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