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The President of the National Bank of Poland (NBP), Adam Glapiński, argues against raising interest rates in a situation of decreasing inflation, deeming it irresponsible. Glapiński emphasizes the successful fight against inflation and expects it to decline rapidly.
During a press conference, NBP President Adam Glapiński asserted that continuing to raise interest rates amidst declining inflation would be irresponsible. He claimed that contrary to popular belief, the NBP took prompt action in the form of interest rate hikes “at the right moment.” Glapiński stressed that the decision to pause at 6.75% did not signify giving up the fight against inflation.
Inflation Decline and Future Projections
Glapiński commented on the decrease in inflation and presented forecasts, stating that they had already reached 13% and were steadily declining. He expressed optimism that inflation may fall below 10% by September, symbolically crossing a crucial threshold. Glapiński reaffirmed NBP’s commitment to reaching the inflation target of 2.5% ± 1 point in the medium term.
According to the OECD, Poland’s inflation peaked in February and has begun to decline. However, the organization predicts that due to a favorable labor market and budgetary expenditures, inflation will remain elevated. The OECD suggests raising interest rates to 7.25% from the current 6.75% to address persistent inflationary pressures and growing deficits. It recommends initiating rate cuts in the second half of 2024.