Poles are feeling the financial strain as persistent inflation continues to impact household budgets. Speaking at a press conference on Friday, Adam Glapiński, the president of the National Bank of Poland (NBP), shared insights into the country’s economic outlook for the coming months.
Glapiński noted that core inflation, a critical indicator for central banks, remains elevated and is expected to hover around 4% this year—a level he described as significantly high. This prolonged period of elevated inflation, he warned, could shape public expectations, fueling wage pressures and the risk of widespread price increases across the economy, particularly in response to rising energy costs.
Looking ahead, Glapiński highlighted the potential for accelerated economic growth in 2025, which he acknowledged as a double-edged sword. While a faster-growing economy is a positive signal, he cautioned that it could further drive inflation and wage dynamics. “We are still observing double-digit wage growth, with no signs of a rapid slowdown,” he stated.
The Monetary Policy Council (RPP) believes current interest rate levels are conducive to achieving the medium-term inflation target of 2.5%, within a tolerance range of ±1 percentage point. However, Glapiński stressed the importance of maintaining these rates, warning that premature cuts could delay progress toward this goal. While the Council has not ruled out future changes, he underscored that current conditions do not justify lowering rates.
Glapiński assured that the central bank remains vigilant and ready to adapt its policies if circumstances evolve, emphasizing, “If the situation changes, our perspective will change too.”
With inflationary pressures persisting, the NBP’s cautious approach aims to balance economic growth with price stability in the months ahead.