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Inflation and interest rates in Poland. Henryka Bochniarz: key aspects of the economy become part of the political game

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The worst part is that interest rates and the fight against inflation are becoming part of politics again. It is forgotten that this is an extremely important aspect of the economy and cannot be played with. The effects in the long run will be really bad, said Henryka Bochniarz, chairwoman of the Main Council of the Lewiatan Confederation, in the program “One for One” on TVN24.

Inflation this is one of the very important problems. Some deal with it better, others worse – said Henryka Bochniarz on TVN24. She stated that “central banks in many countries did not notice the problem and started acting late and introducing instruments that could control inflation.”

But the worst thing is that it becomes part of politics again. It is forgotten that this is an extremely important aspect of economic policy and cannot be played with. The long-term effects will be really bad, she said. According to Henryka Bochniarz, the National Bank of Poland is becoming “another institution that will not be trusted”. – At a time when it was really necessary to speak responsibly about inflation, to communicate with the market, it turned out again that it was part of the political game – she said.

Inflation – June 2023PAP

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Bochniarz: the question is what after the elections

The chairperson of the Main Council of the Lewiatan Confederation also referred to the banner on the headquarters of the National Bank of Poland, on which it was written that accusing the government and the central bank of inflation “is the Kremlin’s narrative”. – If this is a serious institution, it should not function in the social consciousness in such a way. I think that the Kremlin has slightly bigger problems than inflation in Poland. I would suggest that we take an interest in our own backyard, so that we think about how to solve the problems here, and not look for other culprits. I think the key to solving the problem is here.

– After October 15, there is October 16 and the question is: what next? Then what about inflation and interest rates? she wondered. – Fortunately, it is getting better, but the question is whether it is enough to send a signal to the market now that we can afford to lower interest rates – she said. She added that despite the inflation rate being lower than in Poland, other central banks are making announcements interest rate increases. – In a year and in USA and in the European Union it will be possible to say: yes, we are heading towards the inflation target. When will it be in Poland? With such a policy, you don’t know, she said.

800 plus will not improve demographics

Henryka Bochniarz was also asked about the 800 plus program. – This is a program for equalizing economic differences, they operate in many countries. I believe that as such, such a program should function, revalued in line with inflation. However, we know that when it comes to fertility plans, he did not fulfill his role. I don’t think people dealing with the issue were surprised at all.

Interest rates and inflation in Poland

The Monetary Policy Council (MPC) decided to keep NBP interest rates unchanged. The decision is in line with economists’ expectations. The reference rate will remain at 6.75 percent.

NBP reference rate PAP

According to preliminary estimates of the Central Statistical Office, the prices of consumer goods and services in June 2023 increased by 11.5 percent on an annual basis, and compared to the previous month, inflation was 0 percent.

Main photo source: Shutterstock

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