Doctor Bogusław Grabowski, economist, former member of the Monetary Policy Council, spoke in “Kropka nad i” on TVN24 about how to fight inflation. – The recipe is very simple. Monetary policy needs to be tightened, he said. He explained that there are two ways to do this – raising interest rates or quantitative tightening.
Inflation in April 2023 amounted to 14.7 percent, year-on-year, according to preliminary data data from the Central Statistical Office (Central Statistical Office). Compared to the previous month, prices went up by 0.7 percent. In March, the increase in the prices of goods and services amounted to 16.1 percent on an annualized basis.
Grabowski: monetary policy must be tightened
The economic situation was commented on in “Kropka nad i” on TVN24 by doctor Bogusław Grabowski, economist, former member of the Monetary Policy Council.
He was asked how to fight against inflation. – The recipe is very simple. Monetary policy needs to be tightened. He said there are two ways to do it. – Pick up interest rates. The second way – what all central banks in civilized countries do – supplement this instrument with the so-called quantitative tightening – he pointed out.
– During covid, the government bought from the government, giving the government, printing 147 billion for this purpose and he has these bonds in his portfolio. He should sell this money, drawing money from the market – said the former member of the MPC. – Particularly in Poland, this quantitative easing should be stronger than in other countries, because we are not able (…) to raise the interest rate to a level that would bring inflation to the target in a relatively short time – said the visitor TVN24.
Main photo source: TVN24