WARSAW, Nov 25 (Reuters) – The present degree of Polish rates of interest is having a optimistic affect on the economic system and the Financial Coverage Council’s (MPC) pause in coverage tightening will proceed, MPC member Ireneusz Dabrowski mentioned.
Earlier this month the MPC left its predominant rate of interest unchanged at 6.75% for the second month in a row, and Nationwide Financial institution of Poland (NBP) Governor Adam Glapinski mentioned Poland’s charge hike cycle is paused however may proceed.
“In the intervening time, now we have a break on this tightening course of and closing selections will rely upon the incoming information. So we will not say that we have undoubtedly completed (charge hikes), however for now every part appears like this break will proceed for some time,” Dabrowski informed Reuters.
“In my private opinion, the present degree of rates of interest impacts the system so nicely that this pause will proceed for now. In fact, there could also be one other shock at any time,” added the MPC member.
Dabrowski mentioned that based mostly on present information it isn’t potential to find out how lengthy the Council will determine to depart rates of interest on the present degree.
The brand new central financial institution inflation projection exhibits that inflation in Poland is not going to return to the NBP goal vary, 1.5%-3.5%, till the third quarter of 2025.
“For my part, it will likely be quicker than in 2025. I imagine that 2025 is a ‘much less optimistic’ state of affairs,” Dabrowski mentioned.
“The trail of inflation can be downward. The height of inflation can be in the beginning of subsequent 12 months, however I believe it will likely be round 19%, in keeping with the projection. I believe this projection is real looking,” added the MPC member.
Inflation in October 2022 amounted to 17.9%, the statistics workplace reported.
Reporting by Pawel Florkiewicz; Modifying by Toby Chopra
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