(Adds more comments, background)
By Marcin Goettig
WARSAW Feb 15 Poland's central bank is likely
to maintain its current wait-and-see stance until the end of the
year, rate-setter Grazyna Ancyparowicz said on Wednesday, adding
rate hikes may be needed afterwards.
She also said that if a rising trend in inflation is
sustained, tightening monetary policy will be needed before
inflation reaches inflation target's upper bound of 3.5 percent.
Her comments or rates support current expectations of
analysts polled by Reuters that the central bank will begin a
rate hike cycle in early 2018 and echo recent statements of the
central bank governor.
"The risk of exceeding the inflation target is small, but if
a rising trend in inflation is sustained for a longer period of
time, delicate corrections in the level of basic rates will be
necessary ... before inflation reaches the upper bound of the
inflation target," she told Reuters.
"In light of available data, this may take place not earlier
than at the turn of this and next year, given that the economy
does not experience shocks," she said.
The Polish central bank targets inflation at 2.5 percent
with a symmetrical 1 percentage point fluctuation band.
Inflation accelerated to 1.8 percent in January and analysts
polled by Reuters see it hovering below 2 percent until the end
of the year.
"Currently, everything indicates that the 'wait-and-see'
strategy of the Monetary Policy Council will last for a few more
months, most likely until the end of the year," Ancyparowicz
The central bank's rate-setting MPC has kept the benchmark
rate unchanged at a record low of 1.5 percent since a 50 basis
point cut in March 2015.
(Reporting by Marcin Goettig)