MPC's Kotecki Says Market Sees This Week's 75bp Rate Cut As Mistake

NBP's Ludwik Kotecki told Business Insider that the markets see this week's 75bp rate cut as a mistake as the "worst what could happen would be the society concluding that the NBP is pursuing other goals than protecting price stability and the value of the zloty".

• Kotecki, one of the hawkish members of the MPC, said that supporting economic growth falls outside of the central bank's mandate when inflation is so far from its target. He added that besides that, Poland's economic growth is not in a condition that would warrant such a drastic rate cut.
• The official noted that this week's rate decision undermined the credibility of the NBP and led to strong PLN depreciation over the past two days. He predicted that the rate cut was delivered too late to prevent the current economic slowdown but will prolong the path to the inflation target.