Poland Economy Buoyant Despite Expected Rate Cuts
- New Europe Investor
- September 30, 2014
Standard & Poor delivered an injection of confidence into the Polish economy this week.
They issued expected growth rates for 2014 at 3.1% and an increase to 3.3% next year.
They have pointed to Poland’s flexible exchange rate, falling unemployment rate and small overall exposure to Russian ban on food exports which only effects around 0.03% of the economy.
Standard & Poor also warned that whilst the Ukraine is not causing huge problems, the situation is still unstable and unpredictable.
Despite the good news, Poland is expected to again lower interest rates from an already record of 2.5%. The decision will be made following meeting on the 7th October.
There are some concerns this may lead to a future asset bubble, experienced in years previous, but is also seen as essential to insure against the likely threat of deflation towards the end of the year.