Borrowers do not expect such words. According to the President of the Polish Development Fund (PFR) Pavel Borys, lowering the interest rate is a prospect for next year. On WP Newsroom, Boris also predicted when inflation would drop to single digits.
President of the Polish Development Fund (PFR) Pavel Boris was a guest of the editorial staff of the Polish Army. By the way, he was asked if the interest rate could be expected to fall this year. The words of the head of the FIU will not please borrowers.
When will the interest rate go down?
– I don’t know, in a few months we will see how inflation behaves in real terms, but it seems to me that this is the prospect of 2024 – Boris said.
The FIU president said that higher interest rates “should stay with us for a while.” – Because central banks, not only in Poland, must ensure that after the inflationary shock caused mainly by the pandemic and Russia’s aggression against Ukraine, the energy crisis, inflation returns to the inflation target. In some countries, for example in the US, but also in a country like Poland, where we have very low unemployment, rapid wage growth, it will not be such a fast process - – explained the guest of the program.
The positive news is that, according to Boris, an inflationary thaw is approaching, with inflation likely to peak in February. – I expect that in the coming months, disinflation, that is, a decrease in the dynamics of price growth, will be very fast – predicts the head of the FIU.
- Slowly behind the worst moment in the economy - high inflation, economic recession. Inflation should decrease, and the economic situation, especially at the turn of the 2nd and 3rd quarters, should improve - added.
When is inflation in single digits?
According to the PFR President, inflation in Poland will drop to single digits at the turn of the third and fourth quarters. – Everything points to the fact that inflation will peak in the region of 18-19 percent. I am convinced that over the next two quarters, inflation will fall below 10 percent. I assume that at the turn of Q3 and Q4 we will see single-digit inflation. This is due to the decline in commodity prices in the world - Boris said.
February inflation data will be published in mid-March. Earlier, because next week we will know the decision of the Monetary Policy Council on interest rates. At the February meeting, the body decided to leave interest rates at the current level.
Source: Wprost
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