Currently there are no reasons to pursue another interest rate cut, says Przemysław Litwiniuk, member of the Monetary Policy Council.
– I am convinced that there are no reasons at this time to pursue another interest rate cut. We will find out in the November projection whether there are reasons to tighten the policy, Litwiniuk said in an interview with Tok FM.
According to him, the projections will show the first signs of economic recovery. – This is a factor that the government will enjoy and the Monetary Policy Council less, for example due to the fact that the increase in consumption will contribute to a change in the path of disinflation – he said.
The councilor also expects that the disinflation curve designed so far will be ‘less sharp’ and not as ambitious as previously assumed.
The Monetary Policy Council cuts interest rates
In early October, the Monetary Policy Council cut interest rates by 25 percentage points. – in the case of the main reference rate: up to 5.75%, in line with consensus market expectations. In September, the country decided to lower interest rates for the first time: by 75 percentage points. up to 6 percent in the case of the reference rate.
At the press conference the day after the Council meeting, NBP President Adam Glapiński said that the central bank prefers to take a series of smaller, gradual measures regarding the interest rate level. He also pointed out that Poland had achieved moderate inflation and was moving very quickly towards so-called inflation. to sneak. He stated that when inflation reaches 5 percent, the central bank will pursue its target of 2.5 percent with the same vigor and intensity.
Inflation. The Central Bureau of Statistics has released the final data for September
According to the Central Bureau of Statistics, inflation was 8.2 percent on an annual basis and was in line with the flash estimate presented by the Central Bureau of Statistics at the end of last month.
“Currently, when inflation is falling rapidly and at the same time the economic situation is deteriorating, including in the case of major trading partners, the NBP does not hesitate to adjust the interest rate level to the conditions of the domestic economy. Of course, taking into account that the primary objective of monetary policy remains a permanent reduction in inflation towards the medium-term target,” Glapiński wrote in an article published in the Financial Times.
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.
