WARSAW, Dec 8 (Reuters) - Poland’s central bank should cut its key interest rate by 100 basis points, as the economy is unlikely to accelerate enough to bring inflation back to the bank’s target of 2.5 percent soon, rate-setter Andrzej Bratkowski said on Monday.
“Today, no one is expecting either a strong acceleration of growth or a swift return of inflation to its target”, Bratkowski said in a statement published on his website, adding that the latter will not happen until 2016 at the earliest.
“Right now, (a cut of) 100 basis points seems the most justified to me - it significantly brings the cost of credit down, but still does not change the conventional character of our policy,” he said.
He said not cutting rates when consumer prices are falling and the economy is growing below its potential was, in his opinion, against the central bank law. (Reporting by Pawel Sobczak; Writing by Wiktor Szary; Editing by Christian Lowe)