Inflation dipped to 16.2% in March from 18.4% in February, and preliminary data for April is due on Friday. "We expect that the next quarters will be a period of strong and systematic inflation deceleration" supported by the cooling of domestic and global economic conditions and a "clear slowdown" in consumption as the full impact of higher rates filters through, Duda said. According to the central bank's estimates, already implemented rate hikes should cut inflation by 2.8 percentage points this year, she added. (Reporting by Pawel Florkiewicz; editing by John Stonestreet)
WARSAW, April 27 (Reuters) - It is still too early to
discuss potential interest rate cuts in Poland, even though
inflation will probably slow sharply in coming quarters, central
banker Iwona Duda said.
Poland's benchmark rate has been at 6.75% since September
and investors in emerging Europe's largest economy are focused
on when borrowing costs there might start to fall.
"In my opinion, it is still too early to start discussing
potential interest rate cuts. The uncertainty is too high," Duda
said, adding that, for the time being, the bank's monetary
policy council (MPC) had no comment on when its tightening cycle
might end.
"We are still determined to lower inflation in the medium
term. The incoming data confirm that the MPC's decisions in
recent months were correct," she told Reuters in an interview.
Duda's views chime with those presented by Bank governor
Adam Glapinski following this month's policy meeting.
She said the scenario of easing price pressures outlined in
March's central bank projection was taking effect, and that
annual inflation should be back in single digits by the end of
2023.
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