The Monetary Policy Council has officially completed its cycle of raising interest rates, said Adam Glapinski, president of the National Bank of Poland. He announced that if inflation falls below 10 percent. and forecasts will be favorable, the time of cuts will come.
On Thursday, the Monetary Policy Council decided to keep interest rates at the current level. “I have only good news for you. Inflation has been stagnating for the past three and especially two months, NBP president Adam Glapinski said on Friday. He said that the MPC has officially completed its cycle of raising the interest rate, and if inflation falls below 10%, then with favorable forecasts, it will be time to reduce it. According to the head of the NBP, this could happen as early as this year. – There will be no IPC decision-making meeting in August, let’s see how the situation will look after the holidays, – Glapiński said.
“Inflation Stands”
The President of the National Bank of Poland noted that for several months inflation on a monthly basis was zero, which means that prices are not rising compared to the previous month.
- Inflation in Poland on an annualized basis is clearly falling, even at a breakneck pace. This is not our specificity, it is declining all over the world. It currently stands at 11 percent, which is the lowest level in a year, Glapiński said.
Tough times for entrepreneurs
Glapinski pointed out that in Europe in 2022, 70 percent. the rise in prices is associated with an increase in margins. In Poland, this estimate ranges from 50 to 60 percent.
“These were increases due to increased profits under favorable circumstances when demand seemed to be unlimited. Buyers were ready to buy everything, merchants took advantage of this. It took some time, but now this period is over. Enterprises now face a more difficult period associated with rising wages and costs. The market will no longer accept raises. The money has been siphoned off,” Glapinsky said.
Interest rates unchanged
The last two-day meeting of the Monetary Policy Council (MPC) before the holidays ended on Thursday. As expected, the authority once again decided to leave interest rates unchanged.
Thus, the level of interest rates is at the following level:
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base rate 6.75% per annum;
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Lombard rate 7.25% per annum;
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deposit rate 6.25% per annum;
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rediscount rate of 6.80% per annum;
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the discount rate on the bill is 6.85% per annum.
Source: Wprost
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