Member of the Monetary Policy Council (RPP) Joanna Tyrowicz spoke about a possible interest rate cut.
– In the next five projections from the central bank, prices will move further and further away from the inflation target – there is currently no room for austerity, says Monetary Policy Council (RPP) member Joanna Tyrowicz.
What about an interest rate cut?
– I don’t know to what extent these two groups overlap, but the basics of mathematics teach that at least 64 percent. of the 40 experts surveyed (by “Rzeczpospolita” – ed.) believe that the MPC should not lower interest rates. And no more than 10 percent. believes that possible interest rate cuts are okay for our economy for a long time. I share this review – explains Tyrowicz on LinkedIn.
– In the next five projections, prices will only move further and further away from the target. On the other hand, costs in the form of unemployment and/or lower wage increases for workers are lower than projected and are decreasing. There is no room for austerity, explains the member of the Monetary Policy Council.
Economists on interest rates
The daily newspaper “Rzeczpospolita” reported today that 81 percent. of the 42 economists who participated in the paper’s poll believe the Monetary Policy Council will cut the NBP benchmark rate by at least 0.5 percentage point before the end of this year. Others also expect a reduction, albeit a smaller one.
At the same time, 10 percent of the survey participants believe that an interest rate cut this year (by 0.25 or 0.50 percentage point) would be optimal, more than 45 percent. believes that interest rates should remain at current levels, the same believes that they should be higher, according to a study by Rzeczpospolita.
The MPC raised interest rates from October 2021 to September 2022 (from 0.1% to 6.75% in the case of the reference rate). In the months that followed, it kept the parameters of monetary policy unchanged.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
