C.banker Tyrowicz says Poland could hike rates by 200-400 bps more -PAP



WARSAW, Sept 23 (Reuters) - Poland could raise interest rates by 200 to 400 basis points more, central banker Joanna Tyrowicz was quoted as saying on Friday, striking a hawkish tone at a time when many economists say the tightening cycle is nearing its end.

Polish rate-setters are weighing inflation that has surged to its highest level in a quarter of a century against an economic slowdown that has prompted some policymakers to say the scope for further hikes is limited.

"We are talking about raising the interest rate by 2-3 (percentage points), potentially by 4 pps at most... after assessing the scope of effectiveness of the earlier hikes," Tyrowicz was quoted as saying by state-run news agency PAP.

In September Poland's central bank raised its main interest rate by 25 basis points to 6.75%.

However, Tyrowicz said that Poland may need a more "radical" approach.

"Continuing with 25-basis-point hikes at the subsequent sittings would not be a reasonable strategy," she said.

Nevertheless, she said that the need for higher borrowing costs did not necessarily mean rates had to rise in October.

"There is no doubt that rates have to be raised, (but) whether they have to be raised at the next sitting is a completely different issue," she said.
Reporting by Alan Charlish; editing by Jonathan Oatis

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.