WARSAW, April 30 (Reuters) - Two members of Poland's
Monetary Policy Council (MPC) signalled on Saturday that rate
cuts could be possible later this year, after inflation fell
more than expected in April.
Inflation in emerging Europe's largest economy slowed to
14.7% year-on-year in April according to preliminary data
released on Friday, continuing its retreat faster than expected,
but core inflation remained a worry for some economists.
MPC member Ireneusz Dabrowski was quoted by state-run news
agency PAP as telling private broadcaster Polsat News that the
rate-setting body could consider lowering the cost of credit
after the summer given the pace of the decline in inflation.
"There is a high probability that it (inflation) will be in
single digits after the holidays," Dabrowski was quoted as
saying. "Therefore, after the holidays, I think that the Council
will consider lowering interest rates very seriously."
Dabrowski was also quoted as saying that given the sharp
decline in inflation the chances of there being rate hikes was
"close to zero" and that inflation could be less that 7% at the
end of 2023.
Meanwhile, central banker Henryk Wnorowski told local radio
station Radio Lublin that the "light at the end of the tunnel"
had appeared as far as inflation was concerned, opening the way
for a discussion about rate cuts later this year.
"The first symbolic figure we are aiming at is inflation
below 10%, because it is moderate inflation. I am deeply
convinced that this will happen already in the third quarter of
this year," Wnorowski said.
"There is a light at the end of the tunnel that will allow
us to talk more and more boldly about interest rate cuts, and
this is very good news for all borrowers in our country."
(Reporting by Alan Charlish;Editing by Elaine Hardcastle)
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