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Tuesday, December 7, 2021

Inflation in Poland. Jerzy Hausner comments

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Inflation in Poland is the highest since May 2001, in October prices increased by 6.8 percent year on year. – Inflation is like a fire, if you start it, it will probably cause a fire that is difficult to extinguish – professor Jerzy Hausner, former deputy prime minister, assessed in the TVN24 program “Fakty po Faktach”. In his opinion, such a high price increase could have been avoided.

The Central Statistical Office announced on Monday that inflation in Poland in October increased by 6.8 percent year-on-year. In monthly terms, prices increased by 1.1 percent.

– This is high inflation, and high inflation is always dangerous – assessed Jerzy Hausner, chairman of the Open Eyes Economy Summit Program Council, GAP Foundation.

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Inflation in Poland

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Deputy Prime Minister and President of Law and Justice, Jarosław Kaczyński, said on Tuesday on Polish Radio 24 that inflation was too high. – If we hear today the claim that inflation is a problem, it reflects the reality and it is good, albeit wrong, that so late, the rulers noticed this serious problem, because inflation is like fire, if you start it, it will probably cause a fire that is difficult to extinguish – commented the former deputy prime minister.

According to Hausner, there were definitely two things that could have been avoided. – First, for inflation to reach this level, ie 6.8 percent, but almost all projections I know predict that this level will soon be even higher. Probably close to 8 percent and may it not be higher – emphasized Hausner.

– Such high inflation could have been avoided, although it probably could not have been possible to avoid high inflation at all, because we also import it to a large extent – he added.

PAP / Maciej Zieliński

Interest rates in Poland

The second thing – as the guest of “Fakty po Faktach” on TVN24 said – concerns interest rates. – We could prepare ourselves for it in such a way that we would not have to desperately stop the rise in inflation and raise interest rates so rapidly. It was necessary to raise them much earlier and, above all, to prepare a space for lowering them at the right moment, and not now we are in a situation that can be described “on a must” – said the former deputy prime minister.

Jerzy Hausner stated that “we are definitely dealing with a double error”. – The disregard for domestic sources of inflation and the fact that the National Bank of Poland did not prepare the possibility of reacting on its side – he assessed.

Interest rates in Poland were increased in October and November. The benchmark interest rate rose by a total of 115 basis points to 1.25 percent.

The president of the National Bank of Poland and the chairman of the MPC in the reply sent to the Polish Press Agency indicated that a further increase in interest rates is now more likelybut it is difficult to predict whether this assessment will not change.

The next MPC decision-making meeting is scheduled for December 8, 2021.

PAP / Adam Ziemienowicz

Main photo source: TVN24



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