Inflation could be “well below” 10 percent, which will allow interest rates to be cut this year, said Development and Technology Minister Waldemar Buda.
– Inflation has been falling for four months and now is a good time to discuss and lower interest rates later this year – Waldemar Buda said at Thursday’s press conference.
– We will keep inflation below 10% all year, maybe even “well below” and maybe in the third and fourth quarters it will be possible to cut interest rates – he added.
Inflation in Poland
According to the Central Bureau of Statistics (GUS), consumer inflation was 10.8 percent. on an annualized basis in July 2023. According to the central path of the National Bank of Poland’s (NBP) July inflation projection, consumer inflation will reach 11.9%. in 2023 5.2 percent. in 2024 and 3.6 percent. in 2025 (against: 11.9%, 5.7% and 3.5% respectively for these years in the March projection). CPI inflation will return to the range of deviations from the NBP inflation target – defined as 2.5%. +/- 1 percentage point – in the third quarter of 2025
The Monetary Policy Council (RPP) 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.
“Secure Credit”
The Minister of Development and Technology, Waldemar Buda, also announced that “Safe Credit 2 percent.” offer 16-17 banks by the end of this year.
Nine banks are currently participating in the program. On the list of institutions that have made agreements with BGK about cooperation in the field of ‘Secure Credit 2 percent’. making additional payments and providing guarantees of own contribution are currently: Alior Bank, Bank BPS and Banks Spółdzielcze BPS Associations, Bank Pekao, Bank Spółdzielczy Rzemiosła in Krakow, Bank Spółdzielczy in Brodnica, Krakowski Bank Spółdzielczy in Krakow, PKO BP, SGB-Bank and Banks Spółdzielcze Associated with SGB-Bank and Velo Bank.
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.
