Economists: rising inflation will force an interest rate hike on Wednesday
20:22
We are on a collision course with perhaps even double-digit inflation and the Monetary Policy Council may have no choice but to turn back its policy of stimulating the economy with low-interest rates. Economists believe rates will rise next Wednesday, the only question is by how much? Most forecast 0.5 pp. Together with the previous hike, this gives a total of 0.9 pp. Such an increase from the average housing loan of PLN 330,000 gives an increase in the monthly installment by almost PLN 250.
"6.8 percent of inflation is more than market expectations and less than our forecasts (7 percent). However, price volatility in the global market may result in a data revision, as in the previous month, and we may end October at 7 percent," Mariusz Zielonka, economic expert of the Lewiatan Confederation, assessed.
FOR chief economist Sławomir Dudek is concerned about the path towards double-digit inflation.
"Inflation is looking for another high. Double-digit levels are ahead of us," he wrote on Twitter.
