Low interest rates should stay low for a long time, says Eryk Łon

- Low interest rates should be maintained in Poland for a longer period of time, he said in the program "Poland for real" on [...] https://www.pinterest.com/pin/1085437947660215829/

- Low interest rates should be maintained in Poland for a longer period of time - said Eryk Łon, member of the MPC, in the programme "Poland for real" on the web portal "Farmer's World". According to him, NBP should now show that it is doing everything to save the economy. Will low interest rates stay with us for longer? "I believe that they (interest rates - bitcoin.pl) should be kept low, because this stimulates investment, consumption. The experience of other countries shows that where real interest rates were lower, there is a faster economic development. (...) We are an emerging country, so we should try to stimulate the economy more and encourage even greater investment. We will certainly not encourage investments with higher interest rates. I believe that low interest rates should be maintained in the long term. If we catch up with the rich countries, then we could possibly consider (raising rates - note bitcoin.pl)". - Łon said. He added that "we need 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 now would be "deadly" for the markets, in his opinion. "We would cool down the economy even more and cause a very strong recession and high unemployment," emphasizes Łon. No, it will not weaken the zloty Interestingly, he believes that such a policy will not hurt the zloty. "Interest rate cuts do not always have to weaken the zloty. (...) In our currency's favor is the fact that we undertook rescue measures very quickly, compared to other countries. (...) Investors tend to evaluate it positively. Of course, at the beginning the zloty weakened, but this did not result from our actions, but only from the sentiment towards emerging currencies. (...) However, when the situation calmed down, it could be seen that the zloty is perceived as something positive. The information itself that our economy will probably feel the crisis less than other European countries is very good news for the zloty". - he explained. "There is a good chance (...) that we will get out of the coronavirus crisis faster and this will be very positive for the Polish currency," - he added. Tags Eryk Łon inflation NBP MPC interest rates