Representatives from Aviva and Morgan Stanley are criticizing the unexpectedly large interest-rate cut made by Poland's Monetary Policy Council (RPP) last week. The RPP decided to lower the benchmark interest rate by 50 basis points, while analysts had expected a 25 basis-point cut.

“We are unable to build a strategy on it because it seems most of its decisions are taken at random,” Maciej Karasinski, a manager at Aviva PTE SA, which runs Poland’s second largest pension fund, told Bloomberg. “It would have been impossible to predict a 50 basis point cut,” he said.

“It is unusual and confusing for an institution ... to suddenly switch to a bigger cut in such an unexpected manner,” Pasquale Diana, an analyst at Morgan Stanley, said in a report on March 8, pointing out that such decisions usually take place at the beginning of easing cycles, not at the end.

Poland A.M.