Changing NBP president would likely exclude interest rate cuts - Credit Agricole

The dispute between the government coalition and the central bank president has significant implications, dr Jakub Borowski, chief economist of Credit Agricole Bank Polska told 300gospodarka.pl. Any escalation, such as specific actions to remove Adam Glapiński as NBP president, would likely stiffen the central bank's stance and affect interest rate forecasts. Most Monetary Policy Council members would likely view this dispute as a threat to the central bank's independence, emphasizing inflation risks. Additionally, it would impact the government's borrowing needs.

A scenario proposed by MPC member Ireneusz Dąbrowski suggests NBP treating a rate hike as a substitute for selling assets acquired during the pandemic, making it harder for the government to meet its borrowing requirements amidst high inflation risks.

Source: 300gospodarka.pl