Polish rate-setter Gatnar says against below-zero rates

Poland should not cut interest rates below zero, as it may lead to serious destabilisation of the banking sector, rate-setter Eugeniusz Gatnar was quoted as saying on Tuesday by state news agency PAP.

"They (rate cuts below zero) may weaken confidence in (Polish currency) zloty, trigger deposits withdrawals, and spur foreign currencies buys. They may also lead to serious destabilisation of the banking sector," he said.

Poland's central bank cut rates to 0.1% this year.