* Belka says may be temporary volatility after Fed tapering
* New decision on Polish rates guidance possible in March
* Polish economy clearly accelerating, no deflation risk
(Adds Belka's comments, details)
By Sarah Marsh
BERLIN, Dec 12 A reduction in U.S. monetary
stimulus has already been priced in by markets, the head of
Poland's central bank said on Thursday, and any effect on Polish
bonds and currency should be limited.
Speaking in Berlin, Governor Marek Belka also said economic
forecasts due in March from the Polish central bank would
provide support for deciding on future rate guidance.
A massive bond-buying programme by the U.S. Federal Reserve
has supported riskier assets around the globe. Now investors are
getting ready for the moment the Fed starts scaling back.
The first time the Fed mentioned tapering off, in June, many
emerging-market currencies plunged, especially in countries with
high current-account deficits. Emerging-market bond yields
soared. Polish stocks suffered heavy losses. This time, Belka
said, the reaction should be more subdued.
"We may see some transitory movements, maybe on the exchange
rate or sovereign papers, but really transitory," Belka told
Reuters in Berlin. "Not anything that would worry us too much."
Wall Street expects the Fed to start reducing its
bond-buying no later than March. Some expect action as early as
next week, after two straight months of robust U.S. jobs gains.
Belka said the Polish economy, eastern Europe's largest, is
accelerating and there was no risk of deflation. Last week, the
central bank said it would stick to its plan to leave rates on
hold until at least the middle of 2014, resisting the temptation
to match cuts by the euro zone, Hungary and the Czech Republic.
Headline inflation in Poland eased to an annual 0.8 percent
in October, far below the bank's 2.5 percent target. Analysts
expect only a slight rise in November.
However, core inflation, at 1.4 percent, was "quite
stubborn", Belka said, suggesting underlying price growth was
greater than the headline figure would suggest.
"If we look at longer-term inflation expectations, we are
closer to the target ... and what is probably more important is
that we see the economy speeding up," Belka said.
(Reporting by Sarah Marsh; Writing by Marcin Goettig; Editing