NBP head explains 75bp interest rate cut: slowdown faster than anticipated

Explaining the latest surprisingly large interest rate cut of 75 basis points (against market consensus of 25 bp), Adam Glapiński, the President of the National Bank of Poland (NBP) and Chairman of the Monetary Policy Council (RPP), has stated that both inflation and economic growth are slowing down faster than anticipated by the central bank. He mentioned during a press conference that "inflation is decreasing faster than we expected, and the economic situation is slowing down more than we anticipated."

Earlier, he had suggested that consumer inflation could be 5% year-on-year or lower by the end of the year, compared to the preliminary August data of 10.1% year-on-year. He also noted that GDP growth for the year might be below the central bank's initial projection of 0.6%, possibly even close to zero.

Source: inwestycje.pl