Kotecki: In May, the MPC will decide how much to lower the feet, not or cut them

In May, the Monetary Policy Council will not argue or cut interest rates, the discussion will apply to how much to reduce them and whether it is the beginning of the cycle or one -time adjustment – assessed a member of the Republic of Poland Ludwik Kotecki in an interview with the program and Polish Radio. Currently, Kotecki would be a supporter of the cycle and in his opinion the feet can fall to 100 pb by the end of the year.

“You can not pretend anymore – it seems that in May the council will not discuss or reduce interest rates, it will only talk about two things – about the scale of the May reduction and whether it will be a one -time adaptation or the beginning of a cycle of reductions,” said Kotecki.

“If we decide as a advice that it is a rather one -time adjustment, it will probably be a little more, and if it is the beginning of the cycle – it will be smaller steps,” he added.

Currently, Kotecki would support the cycle of interest rates.

“For today, it looks like I would carefully start thinking about the cycle. Due to this I would predict a few discounts, programmed this reduction path and – depending on the data – it implemented in the coming months,” he said.

According to a member of the MPC, in the entire 2025 it would be possible to reduce by 100 PB.

“The script, which I outlined a few months ago, I would rather try to reach these 100 PB by the end of this year,” he said.

According to Kotecki, there are currently more and more arguments for cutting interest rates, among others because of the duties and expectation of the slowdown of the American economy.

“Now there are even more of these arguments, after this week since the last meeting of the Council. What is happening, stagalous scenarios, with an accent to stagnation in the US, which will translate into other economies, cause that there is no justification to keep the feet at the current level,” said a member of the Republic of Poland.

“We will feel the indirect effects related to the slowdown of the world economy, the German economy, because we are strongly addicted to it, and they will feel duties. On the side of inflation, however, I would see a further decline in inflation, there is no reason here that we feel some inflation shock related to tariffs, rather vice versa,” he added. (PAP Biznes)

Pat/ Gor/