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NBP interest rates. Deputy Minister of Finance Artur Soboń: I did not expect such a scale of reduction

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I expected a rather smaller scale of interest rate cuts at the last meeting of the Monetary Policy Council, a series of subsequent reductions. There are many indications that the Council has adopted a different strategy, i.e. a significant, slightly larger than the market expected, reduction already in September – said Artur Soboń, Deputy Minister of Finance in “Rozmowa Piaseckiego”.

The Monetary Policy Council (MPC) decided to lower it on Wednesday NBP interest rates by 75 basis points. The reference rate will drop to 6.00 percent. Most economists of the largest banks in Poland expected a reduction in interest rates, but on a smaller scale – by 25 basis points.

Deputy Minister of Finance Artur Soboń commented on this decision on Friday in “Piasecki’s Rozmowa” on TVN24. He said he expected a cycle, i.e. “a rather smaller scale of this reduction at the last meeting of the Council, a cycle of subsequent reductions”.

– There are many indications that the Council adopted a different strategy, i.e. a significant reduction, slightly larger than the market expected, already in September. Of course, the Council has appropriate analyzes for this, it looks at the demand situation, at how the supply shocks that caused inflation, today they influence the economy. He looks at the projections of daily inflation readings and forecasts that President (Adam) Glapiński presented yesterday – he added.

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He argued that the Monetary Policy Council “is independent here.” – She acted a little differently than I expected a few hours earlier. This is proof that the Council operates completely independently. I also did not expect such a scale of reduction, said Soboń.

He noted that “the market was caught by surprise.” – This was visible in the reaction of the zloty. I observe reality. However, let us not be foolish again by saying that there is anyone who did not expect a situation in which we have such a significant drop in inflation, but above all we have a situation in which there is no longer any inflationary pressure and this inflation will decline in the coming months, I don’t think anyone seriously expected that we would not enter the cycle of monetary easing. Because this is a natural situation in which the National Bank of Poland and the Monetary Policy Council make such decisions – said the Deputy Minister of Finance.

Main photo source: TVN24



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