Polish central banker sees next rate hike in Q4 2017

Warsaw—Poland’s central bank will likely need to start raising rates gradually from their current all-time low in the fourth quarter of next year at the latest, given an expected rise in inflation, rate-setter Grazyna Ancyparowicz said. Ancyparowicz also told Reuters that uncertainty over fiscal policy was holding back private investment in the European Union’s biggest eastern member state. “Assuming there are no major, unexpected events in the economy, fiscal easing … will create an inflationary impulse,” Ancyparowicz said on Thursday, in an interview authorised for release on Friday.
“And most likely at the latest in the fourth quarter of 2017 the first, mild rate raises will be needed,” she said. “If private investment does not pick up, then potential rate increases will be postponed until 2018.” Since her appointment in February, Ancyparowicz has backed the majority of the 10-member rate-setting panel in saying rates should remain unchanged as they support Poland’s balanced economic growth.
Her comments published on Friday supported the view that rates will remain stable until a hike in the second half of 2017 or 2018.—Agencies

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