The time for raising interest rates is over. Now inflation will fall on its own, but it will be painful for citizens, according to former Deputy Prime Minister Jerzy Hausner.
The media reported today about the plight of the Warsaw Institute of Psychiatry and Neurology. Recently, the hospital had to take out a loan from Parabank. This was not the first such situation.
“This is definitely not a coincidence. If we look at healthcare more broadly, there are definitely more hospitals that are heavily indebted and struggling to finance current needs - This was stated by former Deputy Prime Minister Jerzy Hausner in the Facts by Facts program on TVN24.
- On the one hand, we have a public debt that has been growing for years, and which will sooner or later be transferred to other organizations and entities. At the moment, we have very large debts to hospitals and public health. A sharp manifestation of it is the excess mortality, which is visible in Poland. One of the factors was COVID, but it was not decisive - added the former Deputy Prime Minister and Minister of Finance.
No strategic thinking
Jerzy Hausner pointed out that the hospital situation could be the result of a deeper problem in Polish politics.
- I do not see. Many years ago, I said that one of the problems of our country is the lack of a strategic brain. The short term has always prevailed over the long term. Even if there were long-term reforms, they were thwarted by successors anyway. We do not have further milestones in the key areas of our development, which we set and successive governments implement them - He said.
The election campaign began, and with it the promises of loans at 2 and 0 percent.
The former deputy prime minister was also asked about the economic promises made by political parties as part of the ongoing election campaign.
– What is pleasing is that politicians have noticed the housing issue as a serious social problem. It’s not just about over-indebtedness in the mortgage sector. Other aspects are the question of whether we need to move in the direction where 70-80 percent is owner-occupied housing, or should we create a system that has different access routes to housing, including rental housing - Jerzy Hausner said.
– One move, be it a loan at 0% or 2%, cannot be a source of positive changes – however, he added.
The time for raising interest rates is over
We have become aware of the results of the February vote of the Monetary Policy Council. Only three members were in favor of raising the interest rate. Everyone else voted to keep the 6.75% level.
“Reducing inflation is very important. Should the NBP raise interest rates? It’s time for this. Now it will automatically decrease, but this means that we will all buy less. We already have a decline in consumption and real wages compared to last year - Jerzy Hausner said.
“This means that we are on the path to a very sharp slowdown in our economy and will not get out of it quickly. Now we have stagflation, and it can last a long time. It is very difficult to get out of this state. What is needed, among other things, is the coherence of monetary and fiscal policies – - added the former vice-premier.
Source: Wprost
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