MPC's Maslowska Says Central Bank Could Cut Rates In Sep/Oct

MPC's Gabriela Maslowska told PAP newswire that the central bank could reduce interest rates in September or October, without waiting for November's updated macroeconomic projection, if incoming data provide strong arguments in favour of monetary easing.

• "If for example in September or October the rate setters judge that inflowing data are compelling enough, that it's worth making decision about a first cut still ahead of projection, then I believe it would be comprehensible for economic life participants."
• Maslowska said that although the recent strengthening of PLN exchange rate has helped tame inflation, excessive currency appreciation could do more harm than food and this concern could be addressed by a rate cut.
• The policymaker said that a 25bp rate cut would likely be enough as the magnitude of the first move, while "whether further cuts will come will depend on ongoing analysis of the macroeconomic situation in our country."
• Maslowska, who served four terms as an MP for the ruling Law and Justice party, dismissed accusations that the MPC could act under political pressure and said that the panel is directed only by its assessment of macroeconomic conditions.