Key facts
- Ludwik Kotecki is a member of Poland's Monetary Policy Council.
- Kotecki expects interest rates to remain stable for an extended period.
- Geopolitical risks are cited as the reason for stable interest rates.
- A US-Iran peace deal is mentioned as a potential de-escalating factor.
- The central bank halted rate cuts in March.
- Energy price surges linked to the Iran conflict influenced the March decision.
Ludwik Kotecki, a member of Poland's Monetary Policy Council, has stated that interest rates are likely to remain stable for a considerable duration. Kotecki attributes this expectation to the persistent nature of geopolitical risks, which he believes will continue to influence monetary policy. He specifically mentioned that even a peace agreement between the United States and Iran would not necessarily lead to immediate changes in interest rate policy. The Polish central bank had previously decided to halt its cycle of interest rate cuts in March. This decision was made in response to a surge in energy prices, which were directly linked to the ongoing conflict involving Iran. Kotecki's remarks suggest a cautious approach to monetary policy, prioritizing stability in the face of an uncertain global security landscape.