The Monetary Policy Council (MPC) has raised interest rates twice and will continue to act if necessary to prevent continued high inflation – said Adam Glapinski, President of the National Bank of Poland in an interview with Gazeta Bankowa.
The MPC’s next decision-making meeting is scheduled for Wednesday, December 8th. The benchmark interest rate rose – as a result of two increases – by a total of 115 basis points to 1.25 percent.
We raised interest rates twice and will continue them if necessary. Just as we were determined to save the Polish economy during the pandemic, we will not allow rising inflation to continue. Of course, while ensuring sustainable growth in the economy – said Adam Glapinsky.
Inflation in Poland
– We must remember that inflation will remain high until the first quarter of 2022, because – as I said – it is currently being reinforced by increases in the prices of fuel and raw materials in the world, the boom in gas prices in Europe, and the effects of climate policy in the European Union that affect Electricity prices and other factors. However, our actions will prevent these shocks from permanently increasing inflation. As a result, after a few quarters it will begin to retreat – he added.
The Central Bureau of Statistics announced last week that the Consumer Price Index (CPI) in October was 6.8 percent on an annual basis. This is a level not seen since May 2001, when inflation was 6.9 percent year on year. Preliminary data for November will be announced – according to the civil society organizations website – next Tuesday, November 30.
November forecasts prepared by the National Bank of Poland show that inflation this year will reach 4.9 percent, 5.8 percent in 2022 and 3.6 percent in 2023.
NBP win for the army
In an interview with the newspaper, the head of the NBP also positively referred to the plan to transfer a contribution from the profits of NBP to the Armed Forces Support Fund, the creation of which the government announced recently.
– The planned transfer of the contribution from NBP profits to the Armed Forces Support Fund is in my opinion absolutely correct and I am very happy. He stressed that the profit of the central bank is the income obtained mainly from the management of NBP reserves, which are national assets, while national defense is one of the most important functions of the state.
Main image source: PAP / Wojciech Olkuśnik
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