NBP cannot talk to the market
23:12
Contrary to what it seems to people responsible for the communication of our central bank today, it is not about games with investors or polemics with the media on Twitter, Marek Chądzyński, a journalist of 300gospodarka portal wrote in the column.
"The goal of the NBP is to take care of the value of money. In practice, this means keeping inflation as close to the level of 2.5 percent as possible. This is considered optimal for the economy, and this is also the reference point for its activities by the NBP. what the bank does must be subordinated to this overarching goal. It is to use all available tools for this," the journalist wrote.
In his opinion, the bank must be convincing in what it says through the mouths of its representatives. For that to be the case, words must be followed by actions. The point is that the participants of economic transactions (i.e. companies, consumers, investors in the financial market) should be sure that the central bank is serious about fulfilling its mandate. And as inflation rises to 5-6%, i.e. reaches regions far above the target, it will work to counteract.
"If a bank is credible enough, communication alone can do as much as raising rates," Marek Chądzyński noted.
