15:28 23 February 2020
No need for rate hikes: president of NBP
Recent increases in inflation are temporary, in 2021 inflation will return to around 2.5 percent, so there is no need for interest rate increases, wrote in an article for Rzeczpospolita daily Adam Glapiński,.the president of the National Bank of Poland (NBP).
“Of course, higher prices for some products do not please consumers, but first of all, faster growth in prices of these goods today does not mean that they will also become more expensive in the future, and secondly, household incomes rise clearly faster than prices, which means that Poles can afford more,” Glapiński emphasized.
He added that the effect of an increase in interest rates would be a weakening of the dynamics of demand, which is already decreasing today.
“Therefore, such a decision would run counter to the desire to support sustainable economic growth, and at the same time would create a significant risk of lowering inflation below the target in the coming years," he wrote.
(PAP)
