Poland's cen­tral bank to main­tain in­de­pen­dence

The Pak Banker - - COMPANIES/BOSS -

WAR­SAW: Poland's cen­tral bank will main­tain its in­de­pen­dence and keep rates un­changed, re­cently ap­pointed rate-set­ter Marek Chrzanowski told me­dia, de­spite state­ments from rul­ing party lead­ers favour­ing dovish poli­cies. "I feel no pres­sure at all, (there are) no at­tempts to sway our de­ci­sions. As the Mon­e­tary Pol­icy Coun­cil, we are in­de­pen­dent, we do not get any ac­tion rec­om­men­da­tions," Chrzanowski said in an in­ter­view re­leased on Mon­day. Be­fore Oc­to­ber par­lia­men­tary elec­tion swept them to power, a se­nior of­fi­cial from the Law and Jus­tice (PiS) said the party would con­sider a can­di­date's propen­sity for mon­e­tary eas­ing when nom­i­nat­ing coun­cil mem­bers.

PiS of­fi­cials also said they wanted the cen­tral bank to in­tro­duce a cheap-lend­ing pro­gramme, com­pa­ra­ble to Euro­pean Cen­tral Bank's Long-term Re­fi­nanc­ing Op­er­a­tion, and amount­ing to about $88 bil­lion over six years. The op­po­si­tion and some cen­tral bankers said those poli­cies would un­der­mine the cen­tral bank's in­de­pen­dence. But Chrzanowski, who PiS nom­i­nated to the cen­tral bank's Mon­e­tary Pol­icy Coun­cil, said there was no room for un­con­ven­tional mon­e­tary pol­icy. Any change in mon­e­tary pol­icy would dis­turb the bal­ance sup­port­ing the Pol­ish econ­omy, he said. Rates have re­mained un­changed since March 2015, when the cen­tral bank cut them by half a per­cent­age point to a record low of 1.50 per­cent. "We don't want to make any de­ci­sion not jus­ti­fied by fun­da­men­tal changes," Chrzanowski said. Poland's de­fla­tion, which has seen con­sumer prices fall for over a year, is mainly caused by out­side fac­tors, he said. Poland's con­sumer prices fell by 0.5 per­cent year-on-year in De­cem­ber. "I don't think it's a ma­jor threat, be­cause de­fla­tion is be­ing im­ported," Chrzanowski said.

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