Poland Governor Belka confirms no need for rate cuts

Poland's MPC decided to leave their benchmark rate at 1.5%, in line with consensus expectations by considering available data and forecasts, the current level of interest rates is conducive to keeping the economy on a growth path that is sustainable and to sustain macroeconomic balance.

Governor Belka confirmed that Poland has no need for rate cuts, adding that policymakers must pressurize the rate cut's impact on banks. A rate cut would not hurt but neither it is of any benefit, in her view.

"NBP's governor said that deflation may end in January (which is in line with our estimates) and will stay below 1.5% until end-2016. We see a risk of higher inflation due to the implementation of new fiscal measures and possible price increases in the energy sector", says Societe Generale in a research note.