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Poland’s inflation rate is projected to drop below 10% in the coming months, paving the way for a potential interest rate reduction, according to the President of the National Bank of Poland.
Inflation Progressing Downward, Interest Rate Cut Looms
The President of the National Bank of Poland, Adam Glapiński, stated on Wednesday that Poland’s inflation rate had reached 13% but was now clearly declining. He expressed hope that inflation might fall to single digits by September, crossing a significant threshold and indicating progress toward the central bank’s inflation target. Glapiński emphasized that there were no signs of any disruptions to this process.
Real Wages Expected to Rise in Second Half of 2023
Glapiński addressed concerns about a decline in average real wages over the past 1.5 years, assuring that it was not a significant or permanent decrease. He stated that real wages would start increasing again in the second half of 2023, quickly surpassing the levels seen in 2021. This positive development would be linked to factors such as GDP growth.
The Polish economy’s trajectory suggests potential monetary policy easing as inflation continues to subside. Once inflation falls below 10% and demonstrates a sustained downward trend, the National Bank of Poland may consider lowering interest rates. Additionally, the expected rise in real wages in late 2023 could further contribute to economic growth and improved living standards in the country.