Rising wages may soon impact on interest rates

Employment in the private sector rose 4.4% yoy, while salaries grew by 8.4%. Economists expected slightly higher figures. "Nevertheless, the increases are very high and confirm that the growing economy generates new jobs and salaries continued to grow as at the beginning of the year," commented Marta Petka, an economist with Raiffeisen Bank. According to Michal Chyczewski, an economist with Bank BPH, the data confirms that the dynamic growth of salaries is permanent. "We may expect their further growth within the next months," he stated. Some economists believe that the data from the labor market are an argument in favor of increasing interest rates, but that the increase will not happen soon. "Members of the Monetary Policy Council (RPP) will probably consider the increase in the cost of money as late as in July," stated Piotr Kalisz, an economist with Citibank Handlowy. (Puls Biznesu, p. 10) E.B.