WARSAW (Reuters) - Since inflation is not currently a threat for Poland, the Monetary Policy Council (MPC) may focus its discussions on supporting economic growth by cutting rates or introducing unconventional tools in the future, MPC member Jerzy Kropiwnicki said.
“For now I see that there is no inflationary threat, so I can think about what useful actions can be taken to (support) economic growth,” Kropiwnicki said in an interview with Reuters scheduled for publication on Wednesday.
“We can think about the effects of unconventional actions, of different kinds, in Western countries, in Europe, outside Europe, and which of them and on what conditions could possibly be implemented in Poland,” he said.
Kropiwnicki declined to specify what potential measures could be discussed, but said that the MPC had scheduled meetings during which it would talk about them.
The central bank’s governor Adam Glapinski has signalled there may be no need to change the cost of credit for the next two years.
Kropiwnicki said, though, he would opt for an interest rate cut if private investment halts, but would rather such a decision was not taken this year.
He also said that even if economic growth systematically exceeded five percent, there would be no need to react with a change in interest rates.
In the last quarter of 2017 gross domestic product rose by 5.1 percent, while in the whole year growth amounted to 4.6 percent.
The Polish statistics office does not reveal private investment data, but they may be calculated on the basis of investments data published regularly.
The central bank has kept rates unchanged since a cut in March 2015.
Reporting by Paweł Sobczak and Pawel Florkiewicz; Writing by Marcin Goclowski; Editing by Toby Chopra