Polish Vote Jitters Seep Into Rate Outlook as Pause Seen in 2015

Borrowing costs may be cut to a record next year if the vote outcome matches projections in opinion polls, most which have the opposition Law & Justice party with a lead of more than 10 percentage points, policy maker Andrzej Kazmierczak said Wednesday in an interview in Warsaw. Poland’s key interest rate, last cut in March, may stay at 1.5 percent “at least through the first half of 2016,” Anna Zielinska-Glebocka, a fellow member of the Monetary Policy Council, said in a separate interview the same day.

“The temptation to stimulate economic growth will be very strong and if the election result comes in line with the pre- election polls, then a rate cut may take place,” Kazmierczak said. “GDP growth of around 3.5 percent is good, especially when compared with other countries. But considering our underdevelopment, it’s nothing remarkable.”