It’s time for Poland to begin tightening – and we’re not talking a one-off rate rise, either. Central bank governor Marek Belka told Reuters today that it was time to begin a gradual monetary tightening cycle to help strengthen the zloty and cap inflationary expectations.

“The time for observing the situation in monetary policy is ending. I definitely believe that rates should be raised pre-emptively, not just in case,” Mr Belka told Reuters. Asked whether the rate rise could take place this month, Mr Belka replied: “If other “Irelands” happen then a rate hike would not achieve its goal and would not initiate zloty appreciation. For such a hike to initiate this process and be effective, it must take place at a time of stable markets.”

Mr Belka’s comments follow earlier hints, plus several bullish statements from colleagues on Poland’s monetary policy council. Read more