Adam Glapinski, governor of the National Bank of Poland (NBP), has assessed that amid inflation forecasts it has become unlikely that the Monetary Policy Council (RPP), NBP’s rate-setting body, will increase interest rates.
“Taking into account the results of the inflation projection, one might say that further hikes are becoming increasingly less likely,” Glapinski wrote in a letter to the participants of the Banking Forum, which started in Warsaw on March 15.
At the same time, he added that it was too early to start discussing potential interest rates cuts.
“We need to be sure that inflation will be lastingly declining towards the inflation target,” Glapinski wrote.
According to him, the current level of interest rates “should be viewed as proper”.
On March 8, RPP kept the reference interest rate at 6.75%.
On March 10, the central bank published its inflation forecast for the coming years. According to NBP, the average inflation rate in Poland will reach 11.9% this year, 5.7% in 2024 and 3.5% in 2025. (PAP/Business World Magazine)