back to top

    NBP Increases Gold Reserves to Strengthen Economic Stability

    In 2024, the National Bank of Poland (NBP) purchased 5 tons of gold, bringing its total gold reserves to approximately 363 tons. This accounts for around 13% of the nation’s total foreign currency reserves, valued at over $200 billion. NBP President Adam Glapiński stated that gold purchases would continue until gold reserves comprise 20% of the total reserves, aiming to ensure stability and solvency, especially given Poland’s strategic position as a NATO frontline state.

    Economic Resilience and Stability

    Glapiński emphasized that maintaining substantial gold reserves is critical for economic resilience in the face of crises such as pandemics, natural disasters, or military threats. He underlined that these reserves are vital for the continuous functioning of the state without significant disruptions. Since 2018, Poland has increased its gold reserves by over 260 tons, positioning itself as the 15th largest gold holder globally, with only China’s central bank purchasing more gold.

    Regarding inflation, Glapiński indicated that the Monetary Policy Council would not hesitate to raise interest rates if projections show high inflation persisting or increasing in 2025. Conversely, rate cuts would be considered if inflation stabilizes at the target level of 2.5%. He noted that while current inflation is within the target range, it is viewed as a transitional phase, necessitating the maintenance of current interest rates to achieve long-term stability.

    Energy Prices and Future Projections

    Glapiński also addressed the potential impact of rising energy prices on inflation, predicting a rate of 5.2% by the end of the year if partial energy price controls are lifted. He warned that without these controls, inflation could reach 7.5%. Thus, he concluded that any consideration of interest rate cuts within the current year remains unlikely.

    More in section

    2,222FansLike
    379FollowersFollow
    536FollowersFollow