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September 18, 2020
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Low interest rates should be maintained for a long time – says Eryk Łon – Blocksats

Low interest rates should be maintained in Poland for a long time – MPC member Eryk Łon said in the program “Poland for real” on the portal “World of the farmer”. In his opinion, the NBP is now to show that it is doing everything to save the economy.

Low interest rates will stay with us for longer?

“I think you need them (interest rates – bitcoin.pl) to keep it at a low level because it stimulates investment and consumption. The experience of other countries shows that where real interest rates were lower, there is faster economic development. (…) We are an emerging country, so we should rather try to stimulate the economy more and encourage even greater investment. We will certainly not encourage investment in higher interest rates. I believe that low interest rates should be maintained in the long run. If we are already catching up with rich countries, then we could possibly consider (rate increases – note by Bitcoin.pl) “

– said Lon.

He added that “It is necessary to show entrepreneurs, Polish consumers that the central bank or the Polish government will do everything, that it will help economic entities, that we will do everything we can, what we can afford.” Raising rates would now be in his view for markets “Lethal”. “We would cool the economy even more and cause a very strong recession and high unemployment” – emphasizes Łon.

No, this will not weaken the zloty

Interestingly, he is of the opinion that such a policy will not hurt the zloty.

“Interest rate cuts do not always have to cause a weakening of the zloty. (…) The benefit of our currency is the fact that we took rescue actions very quickly, compared to other countries. (…) Investors evaluate this positively. Of course, at the beginning there was a weakening of the zloty, but it did not result from our actions, but only from the sentiment towards emerging currencies. (…) However, as the situation calmed down, it can be seen that the zloty is perceived as something positive. Just the information that our economy will probably feel the crisis less than other European countries is very good information for the zloty “

– he explained.

“There is a good chance (…) that we will get out of the coronavirus crisis sooner and it will be very positive for the Polish currency”

– added.

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