Polish c.banker Wnorowski says rate cuts possible in 2025 - PAP
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WARSAW, July 8 (Reuters) -Polish rate-setter Henryk Wnorowski doesn't rule out scenario of 75 basis points of rate cuts in 2025 or even more, he told PAP news agency in an interview published on Monday.
Poland's central bank governor said last week that interest rate cuts would not happen before 2026 as inflation is expected to accelerate in the coming months, a day after policymakers kept the cost of credit unchanged at 5.75% for a ninth month in a row.
"The market currently prices in that the Monetary Policy Council will reduce interest rates in 2025 by a total of 75 basis points," Wnorowski said.
"Maybe that will happen. However, let us remember that the dynamics of external and domestic economic events is high and these valuations may change ... Personally, I do not rule out such a scenario, but I can also imagine premises for the priced scale (of cuts) to be higher."
Inflation in the biggest economy in the European Union's eastern wing was 2.60% in June, within the central bank's 1.5-3.5% target range and well below the double-digit levels seen in 2023.
However, the central bank expects price growth to pick up again in the second half of the year, pushing inflation outside of its target range again, peaking in the first quarter of 2025.
Reporting by Anna Wlodarczak-Semczuk and Anna Koper; Editing by Ros Russell
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