WARSAW Dec 7 Following are comments by Polish
central bank governor Adam Glapinski delivered on Wednesday
after the bank left its key interest rate unchanged at a record
low of 1.50 percent.
The central bank's statement after the decision is available
Interest rates are at their lowest level in a history. If
CPI will be at 1.5 percent next year, as it is predicted, then
real rates will hover around zero. This will be an important
stimulus (for the economy).
For the last three meetings (with the media) I'm saying that
I would like to see a moment when the council starts thinking it
(a rate rise), but it doesn't look like it will happen next
I expect with a huge likelihood that rates will remain at
the same level (next year).
There was no discussion on cutting rates. You already know
that there are no factors (which would prompt us) to discuss it,
we have record low interest rates, we exited deflation in
November, so (inflation-adjusted) rates will fall without our
action next year anyway.
... As far as interest rates are concerned, there will be no
vivid debate within a year. ...
We are in a wait-and-see mode.
GDP will radically accelerate when absorption of European
Union's funds accelerates.
The whole of Europe experiences low economic growth, but the
situation has not deteriorated. The situation in Germany has not
deteriorated (recently). This is good news, this is a good
starting point, as we are strongly correlated with the German
economy. I'm an optimist when it comes to EU funds. We had
expected this momentum to happen in the end of this year, but it
is delayed to the second quarter of next year.
Our growth was faster than in developed countries. To be
fully happy I would like to see it between 3 and 4 percent
growth accompanied by low inflation.
The zloty exchange rate is affected by the new U.S.
administration and this is obvious that this administration will
support fiscal loosening, so the stock exchange and dollar
reacted, as expected.
Dollar gained, (U.S.) yields rose, which weakened all
emerging markets currencies. Does it have any impact on us? For
exporters it is positive, for importers less positive, but it
does not have a great impact on the (Polish) economy.
Our exchange rate is more volatile than are those of other
economies of our region, because our economy is bigger.
(Compiled by Marcin Goclowski; Editing by Marcin Goettig)