WARSAW (Thomson Financial) - Poland's Finance Minister Zyta Gilowska said today there was no need to raise interest rates and that she hoped the central bank would not even speculate publicly on the potential for more tightening.


"There is no need to interfere with interest rates, in particular seeing as the main rate is at the same level as in the US," Gilowska said.


"I would express my hope that the monetary policy council will not even speak further of rises in interest rates, because this kind of public comment stirs inflationary expectations."


Analysts widely expect the central bank to raise interest rates, now at 4.75 pct, by another 25 basis points this year and to up borrowing costs further in the first half of 2008.


"The economy is very well-balanced," Gilowska said. "The current account deficit is under control. We are seeing a rise in imports, which is normal. At the end of the year, the deficit will be around 4 pct of GDP."

Source: fxstreet.com