Hike rates

Poland could hike rates another 200-400 basis points, says central banker Tyrowicz

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WARSAW, Sept 23 (Reuters) – Poland could raise interest rates by another 200 to 400 basis points, central banker Joanna Tyrowicz said on Friday, sounding hawkish at a time when many economists believe the cycle tightening is coming to an end. .

Polish rate officials are pricing inflation at its highest level in a quarter century against an economic slowdown that has prompted some policymakers to say scope for further hikes is limited. Read more

“We’re talking about raising the interest rate by 2-3 (percentage points), potentially 4 percentage points at most…after evaluating the scope of effectiveness of previous hikes,” Tyrowicz said, quoted by the official press agency. PORRIDGE.

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In September, the Polish central bank raised its key rate by 25 basis points to 6.75%.

However, Tyrowicz said Poland might need a more “radical” approach.

“Continuing with 25 basis point hikes in the coming sessions would not be a reasonable strategy,” she said.

Still, she said the need for higher borrowing costs didn’t necessarily mean rates needed to rise in October.

“There is no doubt that rates need to be increased, (but) whether they should be increased in the next session is a completely different question,” she said.

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Reporting by Alan Charlish; edited by Jonathan Oatis

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