Inflation and interest rates in Poland. Conference of the President of the NBP, Adam Glapiński

Glapiński said that “we have defeated the hydra of high inflation.” – Inflation was not caused by the NBP’s policy, it was not caused by the government’s policy, nor by any magic dreams – argued the head of the NBP.

– The latest NBP projection says that inflation in Poland will continue to decline, said Adam Glapiński. He added that its decline will, however, be “lower than before.” He stated that according to the latest projection, the NBP inflation target, i.e. inflation around 2.5 percent plus or minus one percentage point, will be achieved only at the end of 2025.

The President of the NBP also talked about the latest decision of the Monetary Policy Council. – A decision was made that given the current conditions, the decision to not (reduce – ed.) interest rates is the best one – he said.

He said that the decision was “determined by two factors.”

– After prior adjustment, space for possible further adjustments interest rate cuts in a short period of time it has decreased significantly – he said. – Secondly, uncertainty regarding the pace of disinflation in the following quarters has recently increased significantly – emphasized the head of the NBP.

The Monetary Policy Council ended its two-day meeting on Wednesday and decided to keep all interest rates unchanged, the reference rate is still 5.75 percent.

Analysts surveyed before the meeting expected a rate cut of 25 basis points. Investors on the currency market reacted to the surprising decision on rates. The zloty strengthened after its announcement by a few cents.

The Monetary Policy Council has cut rates twice this year – the first time in September by 75 points. base, and the second one by 25 points. base in October.