For years, PiS has pursued a policy that covered all problems with money, said Bogusław Grabowski, a former member of the Monetary Policy Council, in the “Kropka nad i” program on TVN24. He added that “this policy pursued by PiS and NBP, which kept interest rates negative in real terms all the time, led to the total collapse of savings.”
In October 2021, the Monetary Policy Council started the cycle interest rate increases. As a result, during the year the main reference interest rate increased from 0.1 percent to 0.1 percent. up to 6.75 percent In October, November – and now also in December – the Council decided to keep the NBP interest rates at an unchanged level.
Interest rates unchanged. “Government’s wage hikes hurt”
Bogusław Grabowski admitted that Wednesday’s MPC decision did not surprise him.
– That was known. Interest rates will not be raised. We must point out that the central bank, in accordance with the Constitution and the NBP Act, should take care of the stability of money. To this end, the Monetary Policy Council, which exercises this mandate and these duties at the NBP, is not dismissed, so that it is not influenced by any external forces, it has adopted a strategy of direct inflation targeting. That is, it raises rates or lowers if inflation is too large or too small exceeds this goal. It should bring the money to stability within 24, maximum 36 months, i.e. inflation not higher than 2.5 percent. he said.
According to Grabowski, “Chairman Glapiński is the political nominee of the ruling party.” – He has no intention of pursuing such goals. It only conducts monetary policy to favor, and certainly not to hinder, the ruling party. When there is an economic slowdown, he will counteract this slowdown, regardless of inflation, he said.
The former MPC member disagreed with the statement that borrowers can be satisfied that interest rates have not been raised. – For borrowers, it is important how much more they will pay, what will be the total level of interest above the capital they received. I think it’s better to pay a little more for higher interest rates in a year or two than to have such interest rates for five or seven years or later and even higher, he said.
Grabowski stated that “in one thing Glapiński is verbal, in his ascent to the pier in Sopot”. “I don’t think there will be any interest rate hikes, unless there’s a catastrophe. Raising interest rates prevents the government from winning the electorate ahead of new elections, he assessed.
Grabowski on PiS policy: it’s covering problems with money
The economist stated that “PIS for years it pursued a policy that covered all problems with money.” – This is especially true of its own electorate. This has resulted in an unprecedented level of fixed expenditure in the budget, which is difficult to reduce, and social expenditure dominates in it – he said.
– This policy pursued by PiS and NBP, which maintained negative interest rates all the time, led to a total collapse of savings. This is the part of current income that we do not consume but save. It fell below 5%. said the economist.
– That is why now PiS, although it would like to pursue a policy of even greater deficit and debt, is unable to finance it on our market. Now let’s move on to what Gierek was doing. We will start to indebt the country outside the country – he predicted.
Asked about the payment of the fourteenth and fifteenth pensions “Of course we can’t afford it,” he said. – Can you afford to pay me PLN 30 for each refueling? Or PLN 25 every month for central heating? Can’t I handle it? There are probably plenty of people like me, he said. According to the economist, at the same time, those who “don’t even have enough to eat after paying all the bills” are not getting enough help. – He helps those in need too little, and gives away a huge crowd, millions who do not need it – said Monika Olejnik’s guest.
Jacek Kurski to the World Bank. “I was very surprised”
Grabowski also talked about a new job for Jacek Kurski. The National Bank of Poland announced on Wednesday that Jacek Kurski started working as Alternate Executive Director of the Swiss-Polish Constituent Assembly in the World Bank Group in Washington.
– It surprised me a lot. The World Bank is an international organization that grants loans for various development programs mainly to third world countries. This is not an international shunt, because Mr. Kurski probably has the qualifications to manage it, said Grabowski.
He’ll be bored there for sure. He won’t understand anything (…) I think it’s the President’s nomination Jarosław Kaczyński. That’s why the blacksmith has tongs so that he doesn’t burn his hands. Such gentlemen as President Duda, President Glapiński, these are pliers in the hands of the president to carry out orders – he assessed.
Main photo source: TVN24