(Bloomberg) -- Polish inflation will likely peak at around 6% in the first quarter of next year and decline gradually from there, opening up room for interest-rate cuts, policymaker Ludwik Kotecki said.
Kotecki, one of 10 members of Poland’s Monetary Policy Council, said on Friday that the panel could start discussing rate cuts in the first months of next year. His views signal a shorter path to easing than that suggested by Governor Adam Glapinski yesterday, when the central bank chief said a reduction may be on the cards around the middle of next year.
“The inflation rate will be increasing in the coming months,” Kotecki told Bloomberg. “But then, after the first quarter of next year, inflation should drop — and this time the decline should be sustained.”
Polish policymakers kept their benchmark on hold at 5.75% this week — the level where it’s been at since last October. Inflation stood at 4.3% in August and is likely to rise to between 5.5% to 6% over the first three months of next year, depending on government subsidies for energy costs.
“I see a majority on the MPC that I believe is ready to start discussing monetary easing in the first quarter of 2025, without prejudging the outcome,” he said.
©2024 Bloomberg L.P.
