Poland will experience a strong economic slump in 2023, the head of the country’s central bank has said.
Adam Glapinski told a press conference on January 5 that the slowdown would bring both a decrease in economic growth and falling inflation.
He added that the current 6.75% interest rate level was “adequate for the situation”, and noted: “As soon as it is possible, interest rates will be cut. Will it be possible late this year? We’ll see.”
Steps taken to bring down inflation, which stood at 17.5% in November 2022, in a controlled way would cause an economic cooling, said the banker, but he also stressed that it was “very important” for the cooling not be too drastic.
Glapinski called claims that the central bank’s rate setting Monetary Policy Council (RPP) had begun raising interest rates too late a “blatant untruth”, and said he hoped interest cuts would be possible late this year.
Inflation, he continued, might rise again over January and February, but he expressed hope that it would be in single figures until the end of the year.
The RPP on January 4 left all interest rates unchanged at 6.75%. (PAP/Business World Magazine)
