Poland may continue rate hike policy-central bank
2022.12.08 11:51
Poland may continue rate hike policy-central bank
Budrigannews.com – The governor of Poland’s central bank said on Thursday that Poland’s Monetary Policy Council (MPC) has not decided whether to end its tightening cycle. He also said that the series of rate hikes was paused rather than finished.
The MPC’s decision on Wednesday to keep the main interest rate at 6.75 percent was the third time in a row that it had decided to hold fire. Markets had been looking for signs that any talk of future hikes was over.
Adam Glapinski, governor of the central bank, stated at a news conference, “We are still on hold.” The Council didn’t talk about whether or not to end the rate-hike cycle.
He stated that the MPC considered the current interest rate level to be “optimal.”
Glapinski stated that after rising at the beginning of 2023, he anticipated that inflation would begin to decrease in March or April.
According to data from the statistics office, inflation decreased from 17.9% the month before to 17.4% year-over-year in November.
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Glapinski stated that he hoped the next set of inflation projections released by the central bank in March would indicate a decline in inflation.
He stated, “I hope that… we will be convinced that, at long last, we are in a decline in inflation that lasts.” Then, at that point, there will without a doubt be such a conversation in the Committee.. whether to end the rate-climb cycle.”
Reuters polled analysts and found that rates will stay the same until the end of 2023. However, Glapinski didn’t say when he thought borrowing costs might start to go down.
