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Polish finance minister says "turbulence" in central bank pay row may discourage investors

Reuters  |  WARSAW 

(Reuters) - Polish said on Wednesday that "turbulence" around the could discourage foreign investors, in her first public comment on a row over salaries that could harm the ruling party in an election year.

Opposition politicians called on governor this week to resign after newspaper reports that one of his aides was paid an unusually high salary. The bank has denied a report that the earned nearly four times more than Poland's

As the announced its decision on Wednesday to keep interest rates unchanged, in line with expectations, Glapinski also faced a call from the ruling to provide clarity about the salaries it pays its employees.

"I am sure that everything will become clear," told reporters. "Certainly, turbulence around the central bank is not supportive to how foreign investors assess us."

Glapinski, who is close to the ruling right-wing Law and Justice party (PiS), was expected to be quizzed about the issue at a conference due at 1500 GMT.

PiS told reporters new legislation may be necessary to allow for central bank salary details to be made public.

"We would like a precise explanation of salary levels of the central bank," she said.

On Wednesday the central bank left its benchmark interest rate at a record low of 1.5 percent. It also kept its lombard rate flat at 2.50 percent, the deposit rate at 0.50 percent and the rediscount rate at 1.75 percent.

The pay issue has prompted jitters in Polish financial markets in recent days, with the zloty losing some ground.

officials are closely monitoring developments. holds a parliamentary ballot late this year. PiS, which is ahead in opinion polls, has long pledged more economic fairness and frugality among politicians.

(Reporting by Anna Koper, and Marcin Goclowski; Editing by Gareth Jones)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 19:10 IST
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