Wednesday, September 7, 2016

Glapiński: Do not think of the possibility of rate cuts – Banker

– The Polish economy is doing well, falling investments do not
 are a concern, the temptation to cut rates is not, and Moody’s no reason to
 lower the rating of our country – the most important topics of today’s conference
 press with the President of NBP Adam Glapiński.

 
 
 
 

The Monetary Policy Council again
 He decided to leave interest rates unchanged at a record low
 level. Finished decision-making meeting today was only the second in
 during which the Chairman of the MPC was Adam Glapiński.


 

In addition to the new president of the National Bank of Poland, in today’s press conference was attended by
 Ancyparowicz also Grazyna and Jerzy Kropiwnicki, though none of them took a wider voice.

 

MPC: investment down by
 the prospect of EU and uncertainty

 

At the outset of today’s conference, Adam Glapiński read the content of the message
 MPC. Its content is available in the whole
 the NBP
, the most interesting parts related to the condition of Polish
 Economy:

 

In Poland, GDP growth
 in the second quarter. this year. It increased slightly. The main growth driver remains stable
 growing consumer demand, supported by steady improvement in the market
 labor, favorable sentiment of households and the launch of the program “Family
 500 plus. ” To the higher growth rates of GDP in the second quarter. Also contributed a significant acceleration of export growth.


 

limited to
 GDP growth affected while the decline in investment associated with a temporary reduction
 use of EU funds at the end of the previous perspective
 EU financial and persisting uncertainty about the economic outlook.

 

In the light of the available
 current information, persistent deflation has not, so far, negative
 influence on the decisions of economic operators.

 

This is good,
 will be better

 

At the outset,
 round of questions, the NBP president shared his commentary on the current
 position of the Polish economy.

 

– After the holidays moods are always good, but this time they have
 justification also good data. The situation is stable. Slight improvement, as
 it said in a statement. The situation in the next quarter slightly
 improved, the rate of growth accelerated. If there are no disturbing
 external factors, the situation is developing in the desired direction and positive.
  We expect that by the end of the year and early next, deflation will turn
 in inflation of 1%, which will facilitate the realization of many tasks and will favor
 accelerating economy
– Glapiński said.

 

Chairman of the MPC does not share the alarming tone of analysts,
 which alarmed last very pronounced decline in investment. According to the President
 NBP data for the second quarter was mainly driven by delays in the issuing of
 with the EU.
 

– All the data we have indicate that the decline
 investment due to the protracted start of the new fiscal
 EU perspective. Analysis of the previous period going into perspective shows
 that is analogous to the situation, but if the previous government better prepared
 Programs – he added. As pointed out later, even greater braking investments
 They noted in Latvia and Hungary.

 

– We hope that next year the growth rate will
 acceleration. Undoubtedly, this year’s economic growth will be lower than
 originally we expected. This is a good gain in more than three percent
 This steady growth, which increases the Polish economy. employment great
 It is growing, unemployment is falling, well zaabsorbowaliśmy influx of labor from
 Ukraine. If this continues, we will be very happy – summed.


 

Temptations rate cuts
 no

 

While at the beginning of this year, MPC had hoped for faster
 GDP growth is, according to Adam Glapiński current growth rate is not
 disappointing.


 

– Everyone is keen to see
 faster growth, but the current one is similar to the natural potential
 possible growth rate. The Polish economy is likely at this rate natural
 It can grow. The faster rate above 4%, or close to 4% would undergo
 to some overheating. In this phase of economic development are, so this
 pace satisfies us. We dreamed it to be 3.5% or 3.8%, but 3.8%
 Rather, it will be gone, but maybe the quicker acceleration
 next year – said Glapiński.

 

According to the President of the NBP,
 first change the foot of his term of office will be linked to their salary increase if
 the situation will develop in the direction expected by the Council.

 

– Temptations reduction
 Foot is not, though, “never say never”. Personally, I think that the first decision
 will start rate hikes on acceleration of economic growth and
 the emergence of inflation – he stressed.
 

– If the growth rate
 It fell, then one would lean on the reduction, but there is no such situation.
 Approach of “wait and see” means that we do not move, but we observe.
 Personally I do not think of the possibility that we entered the reduction.
 Rather, I wonder at what point, for example. At the end of 2017., We could
 think about starting tightening cycle – he added.

 

Zero
 details to leave the Council

 

President of the NBP
 did not reveal any details about the resignation of one member of the MPC,
 Mark Chrzanowski.


 

– There is no
 nothing to add. This is a purely personal thing – cut Glapiński.


 

Marek
 Chrzanowiski participated in today’s meeting and a member of the MPC formally
 will remain until the Senate accept his resignation.

 

Glapiński
 calm on rating

 

– I’m counting on the good news. I also count on the professionalism
 Moody’s, that have good information from the Polish economy, they have
 overexposed all aspects, and that they take the right decision and will not change
 rating – he stressed Glapiński.

 

– Honestly speaking, you have to be extremely effort,
 to find a reason (in favor of the reduction – przyp.red.), and and so that
 It is not found. There is nothing like that. (…) There is nothing that would cause
 deterioration in rating. I think the decision will be made professionally. I sleep
 quietly – she said NBP president.

 

Moody’s has revised the rating in Polish
 next Friday. Communication can be expected after the close of European
 exchanges.
 


 

Michael Żuławiński

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