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Polish c.banker Lon says flat rates optimal for at least 12 more months
February 28, 2017 / 8:05 AM / 9 months ago

Polish c.banker Lon says flat rates optimal for at least 12 more months

WARSAW, Feb 28 (Reuters) - The optimal strategy for Poland’s central bank would be keeping rates unchanged for at least 12 more months due to relatively weak investment and low core inflation, rate-setter Eryk Lon told Reuters on Tuesday.

“I generally believe that due to the still low growth rate of investment outlays, the optimal strategy ... seems to be keeping interest rates at the current low level for a relatively long period of time, that is for at least 12 more months,” he said.

“Besides, it is worth remembering that core inflation is at a relatively low level, which also delays the moment of beginning of the phase of monetary policy tightening,” Lon said.

Poland’s 10-member rate-setting Monetary Policy Council (MPC) has kept the benchmark interest rate at a record low of 1.50 percent since a 50 basis point cut in 2015. (Reporting by Marcin Goettig)

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