GUS statistics reveals that the inflationary wave has passed

This was broadly in line with expectations, although bond prices dropped following the news, as some banks were expecting a 4.3% rate, believes Pekao SA analyst Jacek Wiśniewski. A drop in inflation means that the Monetary Policy Council (RPP) is less likely to raise central bank interest rates during its next meeting. Inflation is likely to decline further in October and other macroeconomic indicators also appear to be working in favor of leaving the rates unchanged. "Salary growth is moderate, money supply has declined, the decline in corporate borrowing is the largest in several years, which means that companies are not investing but repaying their debts instead," points out Mateusz Szczurek, chief economist at ING BSK. He adds that in November there will likely be even more information confirming that there is no inflationary threat. (Parkiet, p. 7) T.J.