Gabriela Maslowska Refuses To Rule Out Another Rate Cut Before November

MPC's Gabriela Maslowska said that it is "difficult to say" whether Poland's central bank will cut interest rates further and rate decisions will depend on macroeconomic data at home and abroad, as well as the next projection prepared by the central bank's staff. However, she indicated that another interest-rate adjustment is possible ahead of the publication of the next projection in November.

• Maslowska told Radio Lublin this morning that the decision to cut interest rates by 75bp was "quite brave" but it was justified by the current macroeconomic conditions. She admitted that the usual magnitude of rate cuts is 25bp, which makes this week's decision more significant.
• The official said that the zloty's depreciation was "temporary" and is "not dangerous". She attributed the swing in the PLN to a short-term outflow of speculative capital and said that "more serious capital" will remain in Poland, as it retains its status as an attractive destination for FDI inflows.
• Maslowska said that "the unemployment rate remains low, there is no danger on that front" but "there is no evident tendency, appetite for increasing employment in the industrial sector". She added that "this situation should change and this is our aim - to encourage consumers and producers to greater activity through lower interest rates".
• According to the latest PAP survey, Maslowska is seen as the second most dovish MPC member after Ireneusz Dabrowski. Prior to her appointment to the Monetary Policy Council she was an MP for the ruling Law and Justice (PiS) party. Much of her comments today echo the tone of yesterday's presser with Governor Glapinski, although Maslowska focuses almost exclusively on headwinds to GDP growth.