According to the Monetary Policy Council (RPP) member Eugeniusz Gatnar, a rate hike might be needed in the second half of 2017 in order to stop accelerating inflation from discouraging domestic savings. “I believe that if real interest rates were to remain negative for a longer period of time, then one should consider some reaction. However, as the scale of negative rates is small for now, one has to wait at least until July, carefully observing inflation processes.” Gatnar said in an interview with Reuters.
Gatnar also said he would be concerned about inflation if the inflation would exceeded the Central Bank’s (NBP) 2.5 percent target. “I do not exclude a scenario that if, together with rising GDP, inflation remains for a longer period of time above the target with real interest rates being persistently negative, then it will be justified to consider a decision to raise interest rates this year,” Gatnar said.
Central bank governor Adam Glapiński said this month, that he saw no reason to think about raising rates until the end of 2017 and most likely in 2018 as well.
Since March 2015, the NBP’s reference rate stands at 1.5 percent.