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Wednesday, February 28, 2024

Inflation in Poland. The NBP’s projection does not show conditions for a rate cut, the MPC is not discussing it – Kotecki, MPC

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Looking at the projection of the National Bank of Poland, there are no conditions for lowering interest rates, said Ludwik Kotecki, a member of the Monetary Policy Council, on TOK FM radio. As he pointed out, there is no discussion in the Council on easing the monetary policy.

– If we would like to believe in the projection of NBP analysts, there are no conditions for lowering today interest ratesuntil there are more projections that show that such conditions exist. Today, there are no conditions until the end of this projection period, i.e. until the end of 2025, because we still do not reach the inflation target, said Kotecki.

– Only when we reach this goal can we think about lowering these rates. For the time being, there is no convergence to this goal, and therefore there is no discussion in the Monetary Policy Council about easing monetary policy, he added.

Ludwik Kotecki on inflation

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In Kotecki’s opinion, there are still no signs of weakening of inflation. In his opinion, in the coming months core inflation will rise.

– What raises my concern is that inflation still does not show significant, lasting signs of weakening (…) In my opinion, we are moving away from a certain promise made by some members of the Council that inflation may be in the single digits in December – said the member MPC.

Inflation the baseline will unfortunately continue to grow in the coming months. Next to month-on-month inflation, this is the second indicator to look at, he added.

Inflation in Poland

The Central Statistical Office (GUS) reported on Wednesday that inflation in Feb. increased to 18.4 percent. Every year. The last time inflation exceeded the 18 percent mark on an annualized basis was in December 1996, when it was 18.5 percent.

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