Kotecki Hopes For Pause In October, Says MPC Should Not Debate Further Cuts Until November

NBP's Ludwik Kotecki told TOK FM radio that the Monetary Policy Council should not discuss any changes in interest rates before November, when policymakers will receive the updated macroeconomic forecast from the central bank's staff.

• "The initial, more serious discussion - a discussion, not a decision - on potential changes in interest rates [should not happen before] November. We will have a new inflation projection, so a more serious analysis showing if and when we reach the inflation target. This is the right moment, not in October, a few days before the elections."
• Kotecki said that the MPC should draw a lesson from the fallout from its "surprising, unconventional decision" to cut interest rates by 75bp last week. He reiterated that he hopes that the rate-setting panel will pause in October.
• The official said that "if there will be no more errors" then the MPC may avoid having to tighten policy next year. However, if interest rates keep falling this year, elevated inflation could force the Council to raise rates in 2024.