MPC's Kochalski Says It's Too Early To Discuss Rate Cuts

Bloomberg reports that Polish policymaker Cezary Kochalski wrote in a written response to questions that a discussion about interest-rate cuts is a non-starter for the NBP given the current uncertainty around inflation.

• Kochalski aligns with the dovish-leaning majority in the rate-setting panel and has consistently voted to keep interest rates unchanged.
• The official said that inflation will continue easing in the coming months and should reach single-digit levels at the end of the year.
• Kochalski noted that the economy is on track to experience a "soft landing" while the decline in real wages should help constrain inflation.
• "In light of the current projection and incoming data and forecasts, the topic of interest-rate cuts was simply not taken up or discussed by anyone."
• "Economic and inflationary processes are dynamic. Can they allow for a discussion, also about the timing [of rate cuts] expected by the financial markets? We shall see."