In a message to participants at the economic forum in Davos, which officially started on May 23, the president of the National Bank of Poland acknowledged that the cycle of rate hikes may continue in the coming months.

“As president of the NBP and chairman of the Monetary Policy Council, I want to emphasize clearly that we take our constitutional and statutory obligations very seriously. That is why in October we embarked on a decisive rate hike, which we will probably continue in the coming months until we are confident that inflation will come down permanently “ – we read in messages to forum participants.

The interest rate is not too high

The President of the National Bank of Poland also stressed that current interest rates are “not too high in history” as well as in the region. He pointed out that in the conditions of the ongoing war in Ukraine, the neglect of Russia’s oil and gas, disruptions in supply chains, also related to the lockdowns introduced in China and the closure of ports, inflationary tendencies could increase.

“What this phenomenon will have for economic growth and inflation in the world and in Poland is very difficult to assess at this time. We must take into account that the Polish economy will remain under the influence of unpredictable global events in the near future, and the central bank should take this uncertainty into account in its decisions “ – wrote Glapiński.

“We have outpaced pre-pandemic jobs and unemployment is at a record low. Wages are rising at a double-digit rate. Maintaining strong economic growth with record low unemployment, especially in light of the wars beyond our eastern borders, testifies to the tremendous strength of our economy.” – assess the president of the central bank.

Read also:
What is a nominal interest rate and how does it affect loans?