WARSAW (Thomson Financial) - Poland's central bank has room for a small rise
in interest rates, possibly in June, its policymaker Marian Noga said in a
television interview after the finance ministry forecast showed inflation
stabilise at 4.1 percent last month.
"Finance ministry forecast is good news," Noga, seen as a supporter of
tighter monetary policy among the bank's 10 rate-setters, said in an interview
with TVN CNBC channel. "This forecast justifies one more small rate hike."
Noga said the rate increase in June is most likely, but he could not rule
out a hike in May.
Asked about inflation in coming months Noga said: "I believe inflation
will not top 5 percent by August. It may raise to 4.8-4.9 percent, which is when
I expect it to peak."
The central bank left interest rates on hold last week, pausing with
monetary tightening for the first time in four months after a series of softer
economic data. The main borrowing rate now stands at 5.75 percent.
pawel.sobczak@thomsonreuters.com +48 22 447 2430
ps2/slm
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