WARSAW, March 9 (Reuters) - Polish rate-setter Jerzy Zyzynski would favour a rate cut of 50 basis points in May, he told state-run news agency PAP on Saturday, but no decision could be taken before seeing the February inflation data.
Caught between rising inflation and slowing growth, Poland’s central bank has so far opted to leave rates on hold, but the potential economic fallout of the coronavirus has increased bets on a cut.
“I think we will be able to discuss this in May. I am in favour of 50 basis points. There were proposals to cut by 25 basis points, but what is 25 basis points, it has no effect,” Zyzynski said.
“It all depends on what happens to the economy. If the rate of economic growth falls clearly below 3% and inflation falls, it will be a strong reason to lower rates,” PAP quoted him as saying on the sidelines of a conference.
Poland’s benchmark interest rate has been at a record low of 1.5% since the central bank ended an easing cycle in 2015.
Reporting by Alan Charlish; Editing by Edmund Blair