Piotr Patkowski on increasing interest rates. “NBP is slaughtering the Polish economy?”

– Let’s compare the real activities of NBP from 2021. […] It was one of the first central banks to start raising interest rates. We have them at a lower level, but not much lower than the Hungarians and very close to the Czech ones. Certainly higher than the Federal Reserve and the European Central Bank’s interest rate. a question, What should NBP do harder? raise interest rates more? Increase premiums for borrowers even more and completely slaughter the Polish economy? This is the main question. NBP did a textbook, – said Patkoski during a debate organized at the Polish Theater in Warsaw.

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The government member was answered by Hanna Gronkiewicz-Waltz, former head of the NBP and mayor of Warsaw.

This is not a race to see who raises interest rates faster – the Fed, the European Central Bank or the European Central Bank. NBP raised them a little and did not warn borrowers. To raise interest rates at 0.25 and 0.5 percent. Christine Lagarde can afford it [szefowa EBC – przyp. red.] evaluated. She added that “nothing will help now, the body has to fight itself [chorobę – przyp. red.]Wrong dose of medication was prescribed.

Tomasz Kasprowicz, Ph.D. in Economics, asked Pyotr Batkowski about the professor’s textbook. Glabinsky. He also stressed that NBP was not the first bank to raise interest rates, as the Czechs and Hungarians had done before. He also noted that there is no point in comparing Poland and the United States, where inflation is lower, and therefore interest rates may also be lower.

Dr. Kasprowicz negatively assessed NBP’s activities. He admitted that the central bank was politicized and acting in the interests of one party.

If the opposition wins the elections in the fall, the NBP will suddenly wake up to a huge responsibility for inflation and the zloty, and they will raise interest rates. He said that to bring down the next government, not because it is better for Poland, inflation and the value of the zloty.

Patkovsky replied that there were few economic textbooks on how to deal with the backlog of war abroad and the pandemic.

– There was no possibility in 2021 of significantly raising interest rates until QE stopped completely. And it had to be done concurrently. The advantage of NBP and the central banks of the Czech Republic and Hungary is that they can react faster, the Deputy Minister of Finance assesses.

Dr. Boguslaw Grabowski – former member of the Monetary Policy Council, in the course of the work of the NBP and Chairman Glapiński, stated that “jumping on the hill is calculated by the meter” and possibly by the evaluation of the jury. – It is enough to look at the inflation we have and what it is in the eurozone. There are twice as many, and in the US 2.5 times. After that, efficiency is measured, he said.

In the context of “aesthetic impressions”, he added that President Glabinski is the only head of a central bank in the world who “knows what he likes to eat, how to spend his time, that he has three Alsatian puppies and they love to jump on the sofas”.

Before the pandemic, in the first quarter of 2020, the economic growth rate was 2.2% and inflation was 4.8%. We were on the road to stagflation. A catastrophe against the background of all of Europe before the epidemic and before the war. Therefore, please do not cover yourself with it – he said to Batkowski.

In his opinion, in the course of adopting the euro, one can earn when “acting responsibly”.

– Every tyrant and populist will be against any integration and acceptance of external commitments, because he ties his hands in maintaining power. It’s the same with populism, it’s hard to stick to fiscal standards if you want to buy fiscal policy to stay in power. Dr. Grabowski said that all autocrats and populists, like the Hungarians, would stay away.