UPDATE 1-Zero chance of Polish rate hike in this Policy Council term -governor

(Adds details)

WARSAW, March 5 (Reuters) - There is "zero" chance of a rate hike in Poland during the current term of the Monetary Policy Council (MPC), which ends in 2022, central bank governor Adam Glapinski said on Friday.

The central bank's latest inflation projections, published on Wednesday, showed that its expectations for price growth in 2021 and 2022 had increased, leading to speculation that a rate hike could be be possible.

"The chance of a rate hike during the current term is still zero... this is still very low inflation," Glapinski told a news conference.

According to the forecasts published on Wednesday, the central bank sees CPI of 2.7–3.6% in 2021, compared to 1.8–3.2% in the November projection. In 2022, it sees CPI of 2.0–3.6%, compared to 1.6–3.6% in the November projection.

It targets inflation of 2.5%, plus or minus one percentage point.

Glapinski did not rule out a rate cut, however, if the economic fallout from the coronavirus pandemic deteriorated.

"If the pandemic shock intensifies... we will return to the scenario of cutting rates," he said.

Poland's benchmark interest rate has been at a record low of 0.1% since the central bank cut it three times by a cumulative 140 basis points during the first wave of the pandemic in spring 2020.

Glapinski reiterated that the bank stood ready to intervene in the currency market to weaken the zloty if necessary and said that it would continue to buy government and government-backed bonds.

He said the central bank still had not been informed about the details of a plan to offer out-of-court settlements to the holders of Swiss-franc mortgages and that banks looked to be waiting for guidance from the Polish Supreme Court on March 25 before making a decision.

(Reporting by Justyna Pawlak, Alicja Ptak and Pawel Florkiewicz, writing by Alan Charlish; editing by Angus MacSwan)