IMF expects RPP to raise interest rates by 75bps within 12 months
2011-05-13 11:48:23
The International Monetary Fund's (IMF) baseline projections stipulate for interest rates hikes totalling 75bps in Poland over the coming 12 months, which would bring inflation back to the target (of 2.5% y/y from March's 4.3%) over the policy horizon (18-24 months), the IMF said in a release issued upon completing its mission to Poland.
Earlier this week, the Monetary Policy Council (RPP) unexpectedly raised interest rates by 25bps across the board (to 4.25% in the case of the key market intervention rate).
The Council is now expected to re-launch the cycle in July at the earliest - once it learns the June CPI projection of the NBP, but the most probable timing of this year's next move is the Sep 6-7 sitting (there is no sitting in August).
Economists expect the cycle to be continued next year, with subsequent hikes expected to total 75-100bps.