14:04 1 November 2024
No Interest Rate Cuts in Sight as Polish Pessimism Grows
It could have been a brighter outlook: inflation might have been curbed, but Poles didn’t believe in that possibility. And, as it goes with self-fulfilling prophecies, price growth has accelerated once again. The Central Statistical Office (GUS) reported that Poles are viewing the economic situation more negatively than ever since the government change, with an increasing number of people losing faith in an inflation decline.
The October GUS consumer confidence survey highlights this worsening sentiment, and the results are troubling. More than half of respondents – 55 percent – believe the economic situation in Poland has worsened over the past year, while only 11.4 percent think it has improved. Expectations about inflation have a powerful influence on its course: if people anticipate price increases, they tend to accept them as inevitable. This acceptance allows prices to rise unopposed, as consumers expect and tolerate further inflationary pressures.
(bizblog)
