19:24 4 February 2025
OECD: monetary policy in Poland should remain restrictive
According to the OECD report on Poland, monetary policy should remain restrictive, with rate cuts possible only when inflationary pressure and economic slack decline. Economists suggest a gradual reduction in interest rates as inflation stabilizes. A strong currency has helped curb inflation, and producer price index (PPI) data indicates low goods inflation. However, service inflation remains high, driven by wage growth and a strong labor market.
Poland’s economic slack may ease wage growth, but uncertainty remains regarding the timing of inflation stabilization. Fiscal consolidation could further reduce inflationary pressures and support monetary easing. The National Bank of Poland (RPP) has maintained its key interest rate at 5.75% since October 2023, signaling a cautious approach to policy adjustments.
