Interest rates sharply play? Marek Belka advises the NBP: It is painful, but necessary

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What next with the rise in interest rates? Belka: Further growth is inevitable

Interest rates in Poland increased this fall. At the beginning of November, the Monetary Policy Council decided that the reference rate would go up by as much as 0.75 percentage points, to 1.25 percent. It was the second hike in a row. It is possible, however, that there will be more to come.

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Marek Belka: Interest rates should rise

The matter was commented on by Marek Belka, former prime minister and minister of finance. – The cycle of rate hikes should be continued. It is painful, but necessary – he said in an interview with TVN24. The former head of the NBP also criticized his successor. “He is seen as very dependent on the ruling camp,” he said.

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Belka: NBP governor should say that he is worried about zloty weakness

Belka also referred to the exchange rate. – All this talk about polexit plus what is happening on the border makes many investors think twice about investing money in Poland – assessed the economist. He also said what, in his opinion, could help the Polish currency. – We must clearly – and this through the mouth of the NBP president, and not the prime minister – say that we are concerned about the weakness of the zloty, which will be interpreted by the markets as a tendency to act in the opposite direction – he said.

He also assessed the government’s reaction to the problem of inflation and the weakening exchange rate of the Polish currency. – We are late in the fight against inflation and in the fight for a strong zloty, and it is quite a lot – he said.

Marek Belka: inflation began to spread throughout the economy

The former prime minister had already warned against the effects of the depreciation of money. – To stop it, it is not enough to wait, as in the case of a pandemic wave. We have to act with stricter measures, i.e. raising interest rates – he said in the Morning Talk of in mid-November.

In his opinion, the country’s economic problems may worsen. – Inflation has a tendency to accelerate, that’s the nature of it. Today we have a nearly 7% price increase index. The most important thing is that in the last month prices increased by 1%, only in this one month. If inflation continued to increase at this pace, we have double-digit inflation, he said.

He also assessed that an increase in interest rates “is inevitable”. – We did not notice the moment when imported inflation began to spread throughout the economy. I think we already have an inflationary process, which means wages, prices, etc. are driving up – he said.

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About Eric Wilson

The variety offered by video games never ceases to amaze him. He loves OutRun's drifting as well as the contemplative walks of Dear Esther. Immersing himself in other worlds is an incomparable feeling for him: he understood it by playing for the first time in Shenmue.

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