Interest rate rise: the fight against inflation has begun

The Monetary Policy Council (RPP) has increased interest rates by 50 base points, which means that the most important reference rate of the National Bank of Poland increased to 5.75%. This was far beyond the expectations of analysts and investors, but the value of the złoty rose after the decision was announced. According to analysts, such a large rate increase was related to the desire to meet the target level of inflation. "An increase in inflationary expectations coupled with a rise in the spending power of the public might lead to a significant inflationary leap next year and thus miss the scheduled target," said Marek Zuber, chief economist at TMS. NBP govnor Leszek Balcerowicz told the press that he expects to see further interest rate increases this year. (Parkiet, p. 1) M.M.