The president of the Polish Development Fund was asked in Parkiet TV about whether the MPC will raise interest rates in Poland this week.
Paweł Borys replied that at the moment we are dealing with “normalization of monetary policy”. As he explained, during the pandemic there was a sharp drop in interest rates, to the level close to zero, to stimulate the economy in a difficult moment. – These increases in interest rates are normalization in the sense that the Polish economy is developing at a very fast pace and it is known that then higher interest rates are something normal – he said.
What will the MPC do?
In the opinion of the head of the Polish Development Fund, the Monetary Policy Council “started a cycle of interest rate increases”. – As the NBP president announced, this cycle will continue until we are sure that inflation will be brought under control, so we should also expect further interest rate hikes. – believes Boris.
The meeting of the Monetary Policy Council is scheduled for Wednesday, December 8. According to the first estimates of the Central Statistical Office (GUS), inflation in November reached a record 7.7%.