Borrowers should be happy with what they have been through in recent months, because they will face an even worse fate – said Dr. Bogoslaw Grabowski, a former member of the monetary policy council of the ‘Faktach po Faktach’. Commenting on Mateusz Morawiecki’s bond purchase of more than 4.6 million PLN, the economist estimated that “the prime minister has adequately protected from the consequences of his irresponsible actions”. The program’s guest was also director Grażyna Piotrowska-Oliwa, former head of PGNiG.
Bogoslav Grabovsky, when asked about the situation of the borrowers, said that they “should be happy with what they have been through in recent months, because they will face an even worse fate.”
– How will they see any information or announcements from Prime Minister Morawiecki or Prime Minister Kaczynski that there will be additional benefits or social transfers, that is, an additional injection of demand through growth budget deficit, interest rates will be higher. They will pay more for the loan. They will pay for government donations with the necessary additional increase interest rate. And the National Bank of Poland will raise it – said Grabowski.
The NBP reference rate is 5.25%. It is at the highest level since November 2008. MPC decisions have an impact on loan installments. The next meeting of the Monetary Policy Committee is scheduled for Wednesday, June 8. According to economists’ forecasts, the board will raise interest rates again.
According to Grabowski, the monetary policy board does not perform its duties correctly. – Aside from the interest rate, he has another tool. This is called quantitative tightening. During the pandemic, the National Bank of Poland bought treasury bonds and its subsidiaries. He bought bonds of about 150 billion PLN, issuing empty money. It would be appropriate now for NBP to start selling these bonds, and withdrawing that money. Then the level of restriction, that is, the effect of the central bank on inflationIt will be the same with lower interest rates and less suffering for borrowers – the economist explained.
Morawiecki bonds in millions
Grabowski was also asked about the purchase by the prime minister Matthews Moraveki Treasuries of more than 4.6 million PLN, which resulted from his declaration of interests. Gazeta Wyborcza writes that the head of government in this way “beat off smart inflation”, taking advantage of high interest rates on bonds.
– I must say that I did the same, because as an economist I knew what the actions of the government and the Polish National Bank would lead to. The difference between me and Prime Minister Morawiecki is that he implements this policy. I secured my savings against the actions of Mr. Glapiński and Mr. Morawiecki. You can see that he (Prime Minister Morawiecki – editor) knew what his policies would lead to. Because savers lose more than borrowers, they have irrecoverable property losses. And the real value of the loan is declining for the borrowers, despite the rise in monthly installments. Knowing what he would lead the Poles to, he secured himself. Grabowski replied that such an activity of donating money and generating additional inflationary motives is shameless.
“The prime minister has provided just protection from the consequences of his irresponsible actions, the imposition of the inflation tax and the waste of life savings by the Poles,” he added.
High prices at stations
The program’s guest was also the director, Grażyna Piotrowska-Oliwa, the former head of PGNiG, who was asked why fuel prices They grow quickly. According to experts, we will witness “jumps” in fuel prices, which will appear in the second week of June.
We are not talking about a difference or a few pennies, but a difference of up to 20%. I’m afraid it will be very difficult to stop this trend. It must also be remembered that there is an anti-inflation shield at all times. We currently have 8% VAT, not 23%. If the VAT was 23%, then we would already have more than 9 PLN on the towers – confirmed Piotrowska-Oliwa.
She noted that not all stations in Poland belong to the concerns, some operate on a franchise basis. – They have a logo but they buy fuel at wholesale prices and then sell it. This is the simple reaction that if you buy something more expensive, let’s say at the beginning of the week, because the wholesale fuel price was higher, then the price is raised on the towers immediately so you can keep the fuel margin and have a profit to keep the business. If the fuel was purchased later in the wholesale, in the same week, at a slightly cheaper rate, then these prices will naturally change a little slower on the edifice. She explained that it is about improving profits.
Main image source: TVN24
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