October 23, 2015 / 8:31 PM / 4 years ago

Polish opposition says c.bank independence must be upheld

WARSAW, Oct 23 (Reuters) - The Polish central bank must remain independent, the prime ministerial candidate of the opposition Law and Justice (PiS) party said on Friday, addressing concerns that its policies would remove the bank’s freedom of action.

PiS, tipped to win a parliamentary election on Sunday, has said it wants to get the central bank to pump 350 billion zlotys ($91 billion) into the economy over six years to support economic growth, a plan that rattled financial markets this week and drove the zloty to a nine-month low against the euro.

The party’s candidate for prime minister Beata Szydlo, said that the decision on the stimulus plan would be made by the central bank.

“Above all, we must uphold the sovereignty of the central bank and the Monetary Policy Council,” Szydlo told private broadcaster TVN24. “Decisions of the MPC, for me there is no doubt, should be always guided by the interests of the Polish economy and the Polish zloty.”

The winners of Sunday’s election will appoint eight out of 10 rate-setters early in 2016 and Poland’s PiS-backed president, Andrzej Duda, will nominate a new central bank governor by June 2016.

One of the party’s lawmakers said this week PiS would take into account candidates’ propensity to ease monetary policy when deciding on the eight new MPC members. This drew a strong protest from three current rate-setters on Friday.

$1 = 3.8560 zlotys Reporting by Jakub Iglewski and Wiktor Szary; Editing by Mark Trevelyan

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