May 18, 2017 / 11:18 AM / 6 months ago

IMF urges Poland to tighten fiscal policy - statement

WARSAW (Reuters) - The Polish government should tighten fiscal policy as soon as possible to take advantage of a strong cyclical upswing in the economy, the International Monetary Fund (IMF) said in a statement concluding its annual mission to the country.

“Fiscal consolidation should start as soon as possible to take advantage of the cyclical upswing,” the IMF said. “During 2018–19, the structural deficit should be reduced by 0.5 percent of GDP each year to reverse the current pro-cyclical stance and to build a ‘safety buffer’.”

The IMF added that the near-term economic outlook for Poland is balanced, while the monetary policy stance appropriate.

“The monetary stance is appropriate for now, but the central bank should stand ready to raise the policy rate if accelerating core inflation threatens the inflation objectives,” the IMF said.

Reporting by Marcin Goettig; Editing by Marcin Goclowski

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