Interest rates will remain unchanged for another month at least

APA - Austria Presse Agentur
29-06-2006, 16:41

Warsaw (Puls Biznesu) – The Monetary Policy Council (MPC) left the costs of borrowing unchanged. Analysts expect different decision in July or later.

Warsaw (Puls Biznesu) – The Monetary Policy Council (MPC) left the costs of borrowing unchanged. Analysts expect different decision in July or later.

The decision of the MPC was no surprise to analysts. The main rate amounts to 4 percent.

“The markets did not react at all. But after the MPC announced its communiqué the zloty strengthened and investors started buying Polish treasury bonds”, Tomasz Zdyb, Pekao analyst commented.

The council stressed that inflation could grow more than expected in the April inflationary projection and during MPC’s May meeting.

“The communiqué is stabile but indicates that the risk of a higher inflation is growing. Higher wages and promised payment increases in the mining and healthcare sectors are meant here”, Piotr Kalisz, Bank Handlowy economist said.

According to Leszek Balcerowicz, the head of the National Bank of Poland, the fact that more and more Poles work abroad may adversely affect the prices.

“Working abroad increases wage expectations”, Leszek Balcerowicz said.

According to Piotr Kalisz, the MPC will wait with further rate increases till July when another projection for inflation is ready.

“The MPC may not be as determined to raise rates as part of the market believes. Yesterday’s communiqué does not indicate increases”, Piotr Kalisz said.

 

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Podpis: APA - Austria Presse Agentur

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Inne / Interest rates will remain unchanged for another month at least