22:42 5 November 2024
MPC will announce decision on interest rates on Wednesday
The Monetary Policy Council (RPP) is expected to maintain interest rates without cuts, despite inflation projections indicating a gradual decline by 2026. Experts argue that lowering rates now would send a negative signal, especially with inflation still rising and economic uncertainty due to global events, like the U.S. elections. Poland’s fluctuating currency and high domestic interest rates also discourage cuts. However, some economists suggest rate reductions could support economic recovery, given the slowing growth and weak consumer demand despite rising wages.
Reducing rates could help reduce the high cost of credit, which is hindering investments and economic activity, particularly in sectors like real estate.
(pb.pl)
