New head of National Bank of Poland sworn into office

Poland’s Parliament green lighted Slawomir Skrzypek, the government’s candidate for the head of the country’s central bank, the National Bank of Poland. Skrzypek is not an economist but has spent the last four months as acting chief executive of Poland’s largest bank PKO BP. Markets reacted cautiously. The zloty dipped a percentage point after Parliament approved the nomination.

National Bank of Poland head Slawomir Skrzypek wasted no time in telling reporters that he intends to be an independent when deciding about the country’s monetary policy.

'I always stressed that being independent is one of the most important pillars in the position of central bank head. This independence which is stated in the Constitution is also a measure I will abide by as well.'

The markets reacted cautiously after Parliament approved Skrzypek’s nomination as central bank head. Economist Marcin Belbin from Peako SA says that Poland’s domestic currency the zloty dropped one percentage point.

'The initial market reaction was the sell off of assets, zloty , bonds and stocks so the initial reaction was negative and the investors attitude towards the entire emerging markets is at the moment rather cautious.'

Market flows determine just how high or low the zloty stands. The zloty at the end of the year was very strong. Wednesday’s correction may be the result of the way the currency flow is reacting at the moment and not necessarily due to a change of governor at Poland’s central bank. So what could be the most pressing challenge for the new NBP head right now? Economist Stanislaw Gomułka:

'Monetary policy is determined by a collective of ten people of which the governor of the central bank is just one. We will see how that body responds to challenges on the inflation front in the next several quarters. Officially he says that he is in favor of low inflation and a strong zloty. On the other hand we know that they are in favor of a little more active pro-growth monetary policy.'

NBP head Slawomir Skrzypek didn’t say what challenges await him though he emphasized that he wants to keep inflation low. He kept clear of any questions regarding when Poland is expected to join Euroland.
Source:By Bogdan Żaryn, polskieradio.pl