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Interest rates and inflation in Poland. Anna Czarczyńska comments

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The experience of other countries shows that monetary policy can lead to a crisis. Just like it was in 2008. There is no data that shows that monetary policy can lead the country out of the crisis. However, it can be easily submerged – warned Anna Anna Czarczyńska, an economist from the Kozminski University on TVN24. In her opinion, “the earthquake that was caused by the decision to change interest rates continues”

The guest on TVN24 was Anna Czarczyńska, an economist from the Kozminski University. She commented on the decision of the Monetary Policy Council lowering interest rates.

Read more: “The third largest weakening of the zloty in a decade speaks for itself”

Will CEO Glapiński be able to calm down the markets?

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– I listen to conferences (of President Glapiński – editor’s note), but without pleasure, because they do not correspond to the standards of monetary policy and central bank communication as they are accepted in the world – she began.

When asked how they differ from world standards, she replied that they were in form and content.

– Therefore, communication here is a form of controlling monetary policy. There were headlines with questions whether Mr. Glapiński will be able to calm the markets? Since the statement of the bank’s president is very important for investors, they also make decisions on this basis, explained the economist and added, “I don’t think it will work.”

In her opinion, “the earthquake that was caused by the decision to change interest rates continues.”

– Certainly not like the policy of the European central bank or the federal reserve system in the United States. Every word is weighed there, anecdotes are not answered. Certainly not those that may have a negative impact on the image of the central bank, she said.

After the MPC decision: panic moves begin

She reminded that earlier there was an indirect announcement of interest rate changes. – There was a market consensus that it would be 0.25 percentage points, that there would certainly be such a change. However, no one expected such a big change. This means that the central bank greatly exceeded market expectations – she noted.

According to her, “panic movements are starting.” – Both investors, capital, sale of the zloty are all direct reactions that show that politics is beyond the control of economic value and beyond the control of rational premises. Therefore, it is difficult to think about safe investing in the Polish zloty in a certain perspective, she stressed.

She explained in an interview on TVN24 that monetary policy is not about improving the situation of one group of recipients of this monetary policy. – Only about taking care of the whole, that is, ensuring that the country has a stable currency, that economic forecasts are consistent between fiscal and monetary policy, that we maintain the stability of financial markets – she said.

Who will benefit from this interest rate cut?

– Those who gain are borrowers, but also in the short term – she noted.

She added: “Most borrowers have variable interest rates on loans, which means they will pay less now and possibly in the long term if this inflation persists stubbornly, as indicated by such monetary policy, they will pay more.

– Clearly, the central bank is not fulfilling its mandate to ensure stability, so that Poles can go about their business and not have to worry about whether we will have a permanent stable basis for maintaining the value of the Polish zloty – she said.

“I expect a change in monetary policy after the election”

In her opinion, “the move (RPP – editor’s note) is irrational. It clearly seems to be dictated by our pre-election wave of warming.”

– I expect a change in monetary policy after the election. Because, however, this is a bit like a Turkish scenario, where we actually had elections not so long ago. They were also fueled by the idea of ​​lowering interest rates, even with high inflation, she recalled.

She noted that “the experience of other countries shows that monetary policy can lead to a crisis.”

– Just like it was in 2008. There is no data showing that monetary policy can lead the country out of the crisis. However, it can be easily submerged, warned the economist.

Read also: MPC member on inflation in Poland. “We have no indication that he is under control.”

Main photo source: Łukasz Wawrzyszko



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