Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

UPDATE 1-Poland's 2014 euro adoption is realistic-c.banker

Published 07/21/2009, 02:29 AM
Updated 07/21/2009, 02:32 AM

(Adds quotes, detail)

WARSAW, July 21 (Reuters) - Poland will not be able to enter the ERM2 pre-euro currency corridor this year, although it is realistic to adopt the euro in 2014, a member of the central bank's monetary policy council said in a TV interview on Tuesday.

Warsaw originally hoped to adopt the common currency as of 2012, but the sharp economic slowdown has forced the centre-right government to alter the schedule.

"We were supposed to enter the ERM2 corridor this year, but today we know that because of the crisis it is impossible," Marian Noga told TVN CNBC Biznes.

Asked if Poland's euro entry could take place in 2014, he said: "I see that as realistic."

A country seeking to join the euro zone must first spend at least two years in ERM2, which pegs its currency to the euro.

Noga, who has recently shifted to a neutral bias in monetary policy from supporting further interest rate cuts, also reiterated the rate-setting Monetary Policy Council (MPC) had no more room to cut borrowing costs.

"The MPC should not change rates, this is my view. CPI will definitely ease in July and August to below the 3.5 percent in June," Noga said. "The weak zloty also helps inflation to ease to the MPC's 2.5 percent target."

Poland's central bank cut rates by 2.25 percentage points since November to an all-time low of 3.5 percent but has held fire in recent months as the economy slows. (Reporting by Gabriela Baczynska; Editing by Jan Dahinten)

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.