Litwiniuk Says Continued Wait-And-See Approach Would Be Appropriate For NBP

NBP's Przemyslaw Litwiniuk told WP.pl this morning that cutting interest rates this autumn would be a "rookie mistake" and the Monetary Policy Council should stick with a wait-and-see approach instead.

• Litwiniuk said that the zloty may face depreciation pressures as Poland's interest-rate spreads with core markets are narrowing.
• The official pointed to various fiscal measures which are limiting the impact of tight monetary policy, such as inflation shields, mortgage holidays or mortgage subsidies.
• Litwiniuk flagged several upside risks to the inflation outlook, including looser fiscal policy in the election period, recovery in consumption, or commodity market moves.
• Litwiniuk is one of the three relatively hawkish members of the MPC nominated by the opposition-controlled Senate (alongside Tyrowicz and Kotecki).