Polish central banker says rates could be cut if unemployment rises

WARSAW, Feb 23 (Reuters) - An increase in unemployment could encourage Poland’s central bank to cut interest rates, rate setter Kamil Zubelewicz said in an interview with ISBnews published on Tuesday.

“A signal encouraging cuts could be a marked decline in the number of people employed in Poland. If the vaccination programme develops successfully, this will not happen,” he was quoted as saying.

Zubelewicz, seen as one of the most hawkish members of the 10-person Monetary Policy Council, said he did not support the strategy of cutting rates as “it supports bad investments and discourages saving in money”.

Poland’s main interest rate has been at a record low of 0.1% since May 2020.

Reporting by Alan Charlish and Pawel Florkiewicz; editing by Larry King