WARSAW: Polish interest rates should stay unchanged this year and the central bank should not play a role in the pending solution to Poland's Swiss franc mortgage issue, rate-setter Eugeniusz Gatnar said at the Reuters Eastern Europe Investment Summit.
"The current rate level is beneficial for the Polish economy," Gatnar said on Monday at the summit, held at the Reuters office in Warsaw. "Until the end of this year, I do not expect the rates to change unless something extraordinary happens."
Minutes from the rate-setting panel's May meeting showed that Gatnar is not alone with his views, as the 10-strong body saw stable rates supporting growth.
They panel expects growth to accelerate, as deflation does not seem to harm investments.
While 53 monetary authorities globally have eased monetary policy this year to counter slowing growth and inflation, Poland has kept its main rate at a record low of 1.5 percent for more than a year amid stable growth and stubborn deflation.
Gatnar is one of six rate-setters appointed this year by the conservative, eurosceptic Law and Justice (PiS) party, which has a majority in both chambers of parliament following October's election. Another two were named by President Andrzej Duda, a close ally of PiS, when their predecessors' six-year terms ended, meaning that eight of the MPC's 10 members are new.
Governor Marek Belka is due to step down in June and PiS-backed governor-designate Adam Glapinski has already said cutting interest rates would threaten financial stability.
Even though PiS flagged solving Poland's Swiss franc denominated mortgage problem among key slogans during their winning campaign last year, Gatnar said the central bank should not play any role in the issue's solution.
Thousands of Poles took out loans in Swiss francs when the franc was cheaper against the zloty.
Those borrowers had seen the cost of their loans surge as the value of the franc rocketed.
Gatnar also said Britain's vote on whether to leave the European Union next month, or a possible rate hike by the US Fed should pose no direct risk for the zloty or interest rate stability.
"The direct impact (from Brexit) perhaps wouldn't be strong, but there could be secondary effects, through other countries," Gatnar said.
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