Poland should rethink euro entry date-c.bank head

The current situation prompts a rethink of Poland's euro entry date, the head of its central bank was quoted as saying on Monday, adding there are arguments for a rate cut.
Prime Minister Donald Tusk announced last month that Warsaw wanted to be ready in 2011 to join euro zone, with entry expected the following year.
"Current situation prompts a rethink of the euro entry date," central bank governor Slawomir Skrzypek told daily Rzeczpospolita in an interview.
"Before we enter the ERM-2 rate exchange mechanism, global financial turmoil should be finished," he added.
A candidate country must stay in the ERM-2 for two years before qualifying for the euro.
The governor, seen as a dove among the central bank's 10-strong Monetary Policy Council, also said there are lots of arguments backing a rate cut.
"There are lots of arguments justifying a need for an interest rate cut in Poland," Skrzypek told daily Rzeczpospolita in an interview. "There are many factors singalling for the tightening cycle to at least be halted."
Skrzypek, referring to the recent banking crisis, told Rzeczpospolita the central bank would play the role of a "last-hope lender," if such a problem occurs.
"If there occur problems with liquidity, the central bank is ready to react," he said.
Early on Monday the finance ministry said in a statement there is no threat to Poland's financial market and the government will meet later in the afternoon to discuss its strategy at the European Council meeting due on October 15-16.
The key interest rate stands now at 6.0 percent.
Source:By Adrian Krajewski,Andy Bruceguardian.co.uk