WARSAW: High inflationary risks prevail in Poland despite a looming economic slowdown, Monetary Policy Council(MPC) member Adam Glapinski was quoted on Thursday as saying, adding he would prefer interest rate increases rather than cuts at this point.
The rate-setting MPC remains in a wait-and-see mode as it tries to balance the risks of a weakening zloty and the expected economic slowdown after it already hiked borrowing costs by 100 basis points in four moves earlier in the year.
"For my part, I'm definitely not willing to lower interest rates. It's because the inflationary threat persists and is big, despite the forecast economic slowdown. The threat stems from imported factors," Glapinski told the state PAP news agency.
"I would not have second thoughts on a decision to raise rates if inflation remains continuously at an elevated level," he said in an interview.
"The MPC's main task is to prevent an excessive rise in inflation. As a result, if we move rates, we should take them higher."
Glapinski also estimated Poland's 2012 economic growth at between 2 and 3 percent versus 4 percent seen in the draft budget.
Inflation in Poland eased to 3.9 percent year-on-year in September , but remained above the central bank's 2.5 percent target with a one percentage point band each side.
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