National Bank of Poland head Marek Belka Courtesy of the International Monetary Fund

Poland's rate-setting Monetary Policy Council (RPP) left the headline interest rate unchanged for the eighth month when it convened earlier this week. The decision not to ease monetary policy was made because economic growth and inflation were higher than the central bank's targets.

National Bank of Poland head Marek Belka said at a press conference on Wednesday that interest rate cuts are fairly unlikely in the near future.

RPP member Zyta Gilowska, who also attended the conference, added that “rate cuts are less likely than rate hikes.”

Mr Belka also noted that if economic growth figures for the first quarter of this year provide any grounds for optimism, then interest rates may be hiked.

During the last few weeks inflation has been curbed by a strengthening złoty. Nevertheless, said Mr Belka, this has so far not had any visible effects on Poland's internal economic situation.

Poland A.M.