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Interest rates – January 2023. Information from the meeting of the Monetary Policy Council of the MPC

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A faster reduction of inflation would be supported by the strengthening of the zloty, which, in the opinion of the Council, would be consistent with the foundations of the Polish economy, the Monetary Policy Council announced on Wednesday. The Council decided not to change interest rates. The decision is in line with economists’ expectations. The main reference interest rate is 6.75 percent.

On Wednesday, the Monetary Policy Council decided to leave interest rates unchanged. Thus, the reference reference rate, the main NBP rate, remains at 6.75%.

Back to inflation target

In the communiqué after the meeting, the MPC stated that it was on the decline inflation in Poland will affect e.g. decisions of the main central banks in the world and the global slowdown in economic growth. “In such circumstances, the significant tightening of the NBP’s monetary policy to date will be conducive to lowering inflation in Poland towards the NBP inflation target. inflation will return to the NBP inflation target gradually. At the same time, she admitted that “a faster reduction of inflation would be supported by the strengthening of the zloty, which in the opinion of the Council would be consistent with the foundations of the Polish economy.”

MPC on the economic environment

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The Council assesses that the expected economic downturn in the environment of the Polish economy, together with the tightening of monetary policy by major central banks, will have a limiting effect on global inflation and commodity prices. significant tightening of NBP’s monetary policy will be conducive to lowering inflation in Poland towards the NBP’s inflation target.

The MPC noted, which is a novelty in the communiqué, that in recent months PPI inflation has been declining, which signals “possible reduction of cost pressure affecting consumer prices”.

The Council reiterated that inflation was still running at a high level, which was to a large extent related to the fact that the increase in costs was passed on to the prices of consumer goods.

“High commodity prices are reflected in the increase in food and energy prices, and in addition – together with the persisting effects of previous disruptions in global supply chains – they increase the operating costs of enterprises, which, in the conditions of still relatively high demand, prompted companies to raise prices and contributed to increasing The so-called Anti-Inflation Shield continued to limit the growth of consumer prices.

Pay rise cycle

The press conference of the president of the National Bank of Poland and at the same time the chairman of the MPC, Adam Glapiński, will take place on Thursday. The conference is scheduled to start at 15.00.

In October 2021, the Monetary Policy Council, due to rising inflation, started the cycle interest rate increases. During the year, the main reference interest rate was raised 11 times and increased from 0.1 percent to 0.1 percent. up to 6.75 percent However, in October last year – and later also in November and December – the Council decided to keep the NBP interest rates unchanged. It was the first such decision since October 2021, excluding August, when there was no decision-making meeting.

interest rates PAP

From the last data from the Central Statistical Office shows that inflation in November 2022 amounted to 17.5 percent year on year. Inflation therefore remains at levels not seen since 1997, ie for 25 years. Preliminary inflation data for December 2022 will be released on Thursday.

Main photo source: PAP

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