Despite rising wages RPP leaves interest rates on hold

The reference rate of the National Bank of Poland amounts to 4%, a figure it has been on for a year now. According to the Council, while wages are rising and these are fueling inflation, this is happening within reason. Hence the RPP decided that the current level of interest rates ensures that the inflation target of around 2.5% will be maintained. According to Piotr Bujak, an economist with Bank Zachodni WBK, the short to mid-term level interest rates will to a large extent depend on the dynamics of rising wages and productivity. "As long as productivity exceeds wage increases, interest rates will remain on hold," he said. (Puls Biznesu, p. 7) A.K.