Monetary policy gets interesting

Sep 24, 2014 5:46 PM|Conotoxia.com

Author: finanse.wp.pl
Address: http://finanse.wp.pl/Coraz-ciekawiej-w-polityce-monetarnej
Published: 24.09.2014

Weaker data from the domestic economy, worse readings from the euro zone, the perspective of the monetary policy easing and commotion in the East of the continent are enough reasons for the interest rates cut. There is but one big question: how deep the cuts are going to be and whem will it end?

The Monetary Policy Council consisting of 10 people is divided into two camps. Hawks are usually more concerned with keeping the present and future inflation near or below the goal of the central bank. Doves, on the other hand, think that it is the policy of the cheap loans will restore the prefered raise of the prices level and economy growth, even at the cost of risking temporary exceeding the optimal inflation level.

Marcin Lipka, Cinkciarz.pl analyst

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Sep 24, 2014 5:46 PM|Conotoxia.com

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