Polish central bank voted on rate hike in July, agreed to wait for data -minutes |
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Thu, 23 Aug 2007 13:42
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WARSAW (Thomson Financial) - The Polish central bank voted in July to raise borrowing costs by 25 basis points, but the motion was rejected and the rate-setting council decided to wait for more data before making the move, minutes from the meeting showed today.'Some Council members were of the opinion that the decision to raise interest rate should be taken at the July meeting, as this would follow from the results of the inflation projection,' the council's minutes said.'It was also suggested that a better assessment of the risk of inflation overshooting the inflation target in the monetary policy transmission horizon would require macroeconomic data that were to be released before the next meeting,' they added. 'Thus, it was suggested to suspend the decision to raise the interest rates.'The Polish central bank left its key interest rate unchanged at its July meeting after raising it twice this year to 4.5 pct. Most analysts expect borrowing costs to go up again in August after recent data showed a record rise in corporate wages.The July minutes showed the central bank's 10 policymakers were divided on the impact of growing wages on inflation and the right timing of another rate hike.Some members, however, pointed out that consumer price inflation could rise 'significantly' above 3.5 pct, or the upper limit of the central bank's target, if the economy were hit by sudden jump in food and oil prices.piotr.skolimowski@thomson.com +48 22 447 24 36ps1/sljCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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Polish central bank's Owsiak says MPC doesn't have to raise rates in August 