Inflation in Poland is at the highest level in 20 years. – Our goal is to bring inflation in the medium term up to the NBP inflation target – said Adam Glapiński, president of the National Bank of Poland at the Thursday press conference. The recent interest rate hike was “very significant”, he assessed.
The Monetary Policy Council (MPC) during its December meeting, for the third time in a row, decided to raise the reference rate. This time by 50 basis points to 1.75 percent. In October, the main central bank rate increased from 0.1 to 0.5 percent. It was the first increase since May 2012. In November, the main rate rose again to 1.25 percent.
– Yesterday (Wednesday – ed.) We raised interest rates once again, by half a percentage point, so very significantly. As far as I know, the market was more or less expecting just that – between half a percent and 0.75 percent. After long discussions, we decided that this scale of the rate hike would be the most appropriate – said the president of the NBP and the chairman of the Monetary Policy Council.
– Our goal is to bring inflation in the medium term to the NBP inflation target – reminded Glapiński. As he indicated, the reference rate has increased by a total of 1.65 percentage points since September 2021. – It rose dramatically – commented the head of the central bank.
The next MPC decision meeting will be held on January 12, 2022.
Inflation in Poland
According to preliminary data of the Central Statistical Office, inflation in November increased by 7.7 percent year on year. This is the highest level since December 2000, when inflation was 8.5 percent year on year. It is also a level above the NBP’s inflation target of 2.5%. plus / minus 1 percentage point.