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Polish MPC’s Wnorowski Still Expects Rate Cut Talk in March

Polish central bank. Photographer: Narodowy Bank Polski/Bloomberg (Narodowy Bank Polski/Source: Narodowy Bank Polski)

(Bloomberg) -- Poland’s plan to remove the energy price cap at the end of next year doesn’t change the prospects of interest rate cut discussions in March, according to policymaker Henryk Wnorowski. 

Polish central bank Governor Adam Glapinski on Thursday unexpectedly pushed back the outlook for interest rate cuts into 2026, citing concerns inflation will surge again after the government eventually removes the caps.

“This doesn’t erase the possibility of talks of possible reductions once we get acquainted with the March inflation projection,” Wnorowski told Bloomberg on Friday. 

He added that inflation may accelerate after the shield is removed but this will likely be “neutralized” by other factors such as waning consumption. 

Asked if the governor’s comments reflect the stance of the whole Monetary Policy Council, Wnorowski said that “the council does not take a position so far in advance.”

However, Wnorowski signaled that monetary easing next year may be in total lower than 100 basis points due to the removal of the cap.

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