The Central Bank in Poland has indicated that the country’s economy is on its way to recovery after the bank’s governor announced on TV station TVN CNBC that there would be no rate cuts until early 2010.

While several policymakers have said that rates were likely to stay flat for some time to come due to high inflation and improving growth, Governor Slawomir Skrzypek has continued to underline the banks aim was still towards easing.

Skrzypek said: The MPCs aim was to give the market a clear signal that there will be no rate cuts until the end of the current MPCs term,

The interest rates have remained unchanged at an all-time low of 3.5%, which analysts said reflected a switch to a neutral bias from previous easing.