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Interest rates and inflation in Poland. Bogusław Grabowski comments in the “Kropka nad i” program

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I know what some borrowers say. Enjoy. But there are many times more people who have savings than borrowers and they lose many times more – this is how Bogusław Grabowski, a former member of the Monetary Policy Council, commented on the decision to reduce interest rates by the Monetary Policy Council in the “Kropka nad i” program on TVN24. – This is a completely political decision – he added.

The guest of the “Kropka nad i” program was Bogusław Grabowski, former member of the Monetary Policy Council. He was asked about the MPC’s decision to lower it NBP interest rates by 25 basis points. The reference rate will drop to 5.75 percent.

Grabowski: a completely political decision

– The President of the National Bank of Poland does not fulfill his constitutional and statutory mandate. He politicized the central bank and monetary policy. I was happy with this absurd decision from a month ago (the Monetary Policy Council then reduced rates by 75 basis points – ed.), because for some people it took such a move to realize that this bank is politicized and pursues political goals. He doesn’t care about the stability of money, only the stability of power Jarosław Kaczyński – said Monika Olejnik’s guest.

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According to him, it is a “completely political decision”. – It had no economic basis. I know what some borrowers say. Enjoy. But there are many times more people who have savings than borrowers and they lose many times more, he noted.

As he added, “in total, they lost approximately PLN 250 billion on their savings due to inflation and too low interest rates, and borrowers paid approximately PLN 40 billion extra to service their loans due to higher interest rates.”

– The government only cares about itself and the will to remain in power. We are talking about Jarosław Kaczyński because PIS is an instrument in his hands – he emphasized.

Involvement in the election campaign

Bogusław Grabowski said that v USA inflation in August 2022 was 9 percent. – Now the inflation has been reduced to 3.6 percent, while a month earlier it was 3.2 percent. At this inflation they have interest rates of 5.5 percent. Our inflation is supposedly 8.2 percent and interest rates are 5.75 percent – he explained.

– He (President Glapiński – editor’s note) does not understand economics. He did not deal with macroeconomics or monetary policy, only the history of economic thought. That’s probably where all the jokes come from during his stand-ups. This does not matter, however, because he subordinated monetary policy to Jarosław Kaczyński and the government. He runs it in such a way as to favor the government, he noted.

As he added, “these rate cuts will not affect the economy in two or three weeks, but only for the next year, when it is not known who will rule.”

– He got involved in the (election – ed.) campaign by cutting rates – he said.

“These debts will be repaid by them and their children.”

The “Dot the i” guest said that “the CPI index is being politicized before our eyes, it does not reflect the measure of the actual inflation process.”

– First, the government froze it electricity prices, gas, limited the prices of central heating, reduces VAT to zero on food, but this is only because citizens do not notice that this is happening at the expense of their debt. These debts will be repaid by them and their children, he emphasized.

He pointed out that “the fuel price has become an instrument of political and electoral struggle and does not reflect market conditions.”

– From the beginning of September, the prices of monthly tickets in PKP Intercity were also reduced, the already frozen electricity prices were lowered, free medicines were introduced, and what did the Central Statistical Office do? This is another institution that has become politicized and is getting involved in the election campaign, Grabowski noted.

Inflation in PolandPAP/Mateusz Krymski

Read also: There is a decision of the Monetary Policy Council on interest rates

Main photo source: TVN24



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