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Tuesday, September 28, 2021

Interest rates in Poland. When can we expect a rate hike? Opinion of a member of the Monetary Policy Council (MPC)

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Interest rates in Poland have remained unchanged for over a year. – I believe that nothing bad will happen if we wait for the November projection and only then we consider whether we should raise interest rates after this projection appears. I am not excluding anything in this respect – wrote Eryk Łon, a member of the Monetary Policy Council in an article for Radio Maryja.

“In my opinion, the risk related to an increase in interest rates is currently too high to make this increase now. I believe that nothing bad will happen if we wait for the November projection and only then consider whether it is appropriate to do so after this projection appears. raise interest rates. I do not rule out anything in this regard “- wrote Łon in the article entitled “Poland’s right to conduct its own monetary policy is of great importance and it is definitely worth defending”.

Interest rates – will there be a hike?

“(…) Too rapid increase in interest rates may accelerate the upward trend in the yield of Polish 10-year treasury bonds, which has been shown in the last two weeks, and it would not be a desirable phenomenon from the point of view of minimizing the costs of public debt servicing,” he added.


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In his article, Łon has repeatedly pointed to the role of the anti-inflationary impact of the recent decline in oil and commodity prices in the world markets.

He stressed that it cannot be ruled out that in the coming months the reductions in the prices of raw materials will be continued, which would lower the price pressure also in Poland.

Interest rates in Poland and in the world – June 2021PAP

Interest rates in Poland

The Monetary Policy Council at its last meeting kept all NBP interest rates unchanged; the reference rate is still 0.10 percent. on an annual basis.

According to the announcement of the National Bank of Poland, the lombard rate of 0.50 percent. on an annual basis; deposit rate 0.00% on an annual basis; rediscount rate 0.11% on an annual basis; discount rate 0.12% on an annual basis.

Glapiński on interest ratesNBP

The Monetary Policy Council changed the interest rates in Poland for the last time over a year ago – in May 2020.

Change in interest rates – probable dates

The President of the NBP, Adam Glapiński, spoke recently in an interview with “Dziennik Gazeta Prawna”that it would be unwise to raise interest rates until the pandemic is resolved. In an interview with the newspaper, the NBP president pointed out that although the impact of successive waves of the pandemic on the economy is getting weaker, it still occurs and it is difficult to say what it will be like in the future. – Therefore, it would not be very sensible to raise interest rates before the situation clears up, especially as the epidemic has started to deteriorate again in some countries – emphasized Glapiński.

Recently, the National Bank of Hungary (MNB) decided to raise interest rates for the second time in recent weeks. The reference three-month deposit rate rose from 0.90 to 1.20 percent. According to the central bank, this is supposed to help ensure price stability.

On the tightening of monetary policy in June the Czechs also decided.

Main photo source: Shutterstock

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