March 9, 2015 / 6:22 AM / 5 years ago

Polish rate-setter Glapinski sees rates unchanged into early 2016

WARSAW, March 9 (Reuters) - Polish central banker Adam Glapinski said he expected interest rates to remain at current record lows until early 2016, when most of the monetary council members’ end their term.

“By the end of the council’s term, one should not expect a change in the level of interest rates, although extraordinary circumstances do not utterly exclude this,” Glapinski told reporters.

He added that by such circumstances he meant a potential, massive capital inflows to Poland after the European Central Bank (ECB) launches quantitative easing.

Glapinski also said that moderate inflows, which would result in a gradual strengthening of the zloty, would not be harmful for the economy.

“A stronger zloty is not that dangerous. Exports will manage. But a violent inflow would later result in a risk of a violent outflow,” he said.

At its March meeting, Poland’s central bank cut rates by 50 basis points to a record low of 1.5 percent.

The term for most of the council members ends in January and February next year. (Reporting by Pawel Sobczak; Writing by Agnieszka Barteczko; Editing by Kim Coghill)

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