Iwona Duda Says More Certainty Is Needed Before Cutting Rates

Bloomberg runs comments from NBP's Iwona Duda, who said that inflation seems to be easing in line with the central bank's forecasts, but more certainty is needed before taking the decision to lower interest rates.

• Duda said that core CPI inflation should reach single-digit levels at the end of this year, which contrasts with recent comments from her hawkish colleagues, who had been warning that core inflation could prove stubborn.
• However, she was also more cautious than some of her colleagues from the dovish camp. In the recent days, Governor Adam Glapinski expressed hope that rate cuts would be possible in Q4, while Gabriela Maslowska said PLN appreciation has raised the odds of monetary loosening by the year-end.
• The official refused to speculate on the timing of the first rate cut, albeit she acknowledged that markets are pricing such a scenario. She noted that the MPC will only lower rates "if we are sure that inflation will fall quickly to the inflation target."