WARSAW, May 2 (Reuters) - Governor of the National Bank
of Poland Adam Glapinski said he hoped the first interest rate
cut would be possible at the end of the year, but it will depend
on how much inflation eases.
After the meeting of the Monetary Policy Council in April,
Glapinski said that the MPC will cut interest rates when it is
certain that inflation is heading towards its target, adding
that it has not officially ended its tightening cycle.
Poland's main interest rate has been at 6.75% since
September.
"I hope that what economists participating in the recent
survey of Obserwator Finansowy predict will happen, and also
what is consistent with the predictions of financial markets,
i.e. that at the end of the year the first interest rate cut
will be possible," - Glapinski said in an interview with Gazeta
Polska weekly.
He said that it would depend on whether inflation would slow
at the pace predicted by the central bank's projection, and that
"will depend on many factors."
"Therefore, this is not a promise, because everything will
depend on inflation and the economic situation," Glapinski said.
Inflation was 14.7% in April according to a flash estimate
from the statistics office, compared with 16.1% in March. The
NBP targets inflation of 1.5% to 3.5%.
(Reporting by Pawel Florkiewicz; Editing by Jacqueline Wong)
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