Poland may be able to narrow deficit to 3pc of GDP

WARSAW: Poland has a chance of narrowing its deficit to 3 percent of gross domestic product (GDP) in 2012, the the central bank chief was quoted as saying on Monday.

"We had a deficit of almost 8 percent, then probably of 5.5 percent last year, or maybe even less. This year we have a chance to get it down to 3 percent of GDP. Consolidation is working," Gazeta Wyborcza, a daily newspaper, quoted Marek Belka, governor of the central bank, in an interview.

Belka added that interest rate cuts were unlikely given persistently high inflation .

In December, the central bank's Monetary Policy Council said there was a significant risk the Polish government would miss its 2012 deficit target of below 3 percent.