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Inflation and interest rates in Poland. Conference of the President of NBP, Adam Glapiński. Commentary by Leszek Balcerowicz

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If you were to choose someone who is completely unsuitable for this position, it would certainly be Adam Glapiński – said Leszek Balcerowicz, former deputy prime minister and finance minister, former president of the National Bank of Poland, in “Fakty po Faktach”. He assessed that “at this level of interest rates, there is no chance for a quick drop in inflation.”

The guest of “Fakty po Faktach” was prof. Leszek Balcerowicz, former deputy prime minister and minister of finance, former president of the National Bank of Poland, who was asked about the latest decision of the Monetary Policy Council to leave interest rates at the current level and about the conference of the head of the central bank, Adam Glapiński, who said on Thursday that he expects inflation will be 6% in December.

– I follow the predictions of Mr. (NBP President Adam) Glapiński and on this basis I want to say that he is a specialist in false forecasts – he said.

“I don’t think he did it on purpose.” There is an even worse reason, he does not control what he says – said the guest of “Fakty po Faktach”.

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“At this level of interest rates, there is no chance of a quick fall in inflation”

Prof. Balcerowicz explained that “in 2018, inflation in Poland was 1.2 percent, and in euro area 1.8 percent.” – And now we have an incredible gap and this is only the result of the policy of Glapiński and his PiS colleagues in the Monetary Policy Council – he stressed.

In his opinion, “no external factors (as the cause of inflation) come into play”. – We now have 16.6 percent (inflation – editor’s note) year-on-year in December, and in the euro area below 10 percent. IN Spain is below 6 percent. If you were to choose someone who is completely unsuitable for this position, it would certainly be Glapiński. As well as (Zbigniew) Ziobro He is unfit to be the Minister of Justice.

In his opinion, “at this level of interest rates, which are much, much, much lower than inflation, there is no chance for a quick drop in inflation.”

– I am not saying that it will not fall at all in the second half of the year (editor’s note), but it will remain at a high level. Let me remind you that even 10 percent is four times more than the inflation target of the National Bank of Poland – he said, appealing “so that we do not get used to Glapiński’s pathology”.

Leszek Balcerowicz in “Fakty po Faktach”TVN24

“First there was a bonanza, then a crash”

The guest of “Fakty po Faktach” also said that the current time reminds him of the era of (Edward) Gierek. – First there was a bonanza, and then a crash due to the costs of the wrong economic policy – said Leszek Balcerowicz. – This year, the costs of PiS policy, the costs of appropriating the state, the costs of politicizing companies will become visible in all their splendor, and in addition – and here it must be remembered that it is not only about greed or ineptitude – also about exceeding elementary standards of decency – assessed the former deputy prime minister . “Even if someone likes to see more of the state in the economy, decency should make them reject these kinds of political parties,” he added.

Interest rates in Poland

The second two-day decision-making meeting of the Monetary Policy Council in 2023 ended on Wednesday. The MPC decided to hold NBP interest rates at an unchanged level: – the reference rate will remain at 6.75 percent. on an annual basis; – lombard rate of 7.25 percent. on an annual basis; – deposit rate 6.25 percent. on an annual basis; – rediscount rate of 6.80 percent. on an annual basis; – discount rate of bills of exchange 6.85 percent. on an annual basis.

Interest rates – February 2023PAP

Main photo source: TVN24



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