Tomorrow at At 12.30 a meeting of the Senate Committee on Budget and Public Finance is scheduled. The committee is to issue an opinion on candidates for MPC members. Already in December we got to know the senators’ indications for the function of MPC members.
Ludwik Kotecki is a former deputy minister of finance, former chief economist of the Ministry of Finance, as well as a member of the Polish Financial Supervision Authority and chairman of the Bank Guarantee Fund Council.
(…) from the beginning of his professional activity he focused (Kotecki – ed.) on macroeconomic policy, including monetary and exchange rate policy. Thorough knowledge and extensive experience in the field of macroeconomic policy (…) guarantee that it will professionally and impartially fulfill its obligation to act in accordance with the objectives of the National Bank of Poland (…) – we read in the justification to the candidacy of Ludwik Kotecki (Senate print no.603).
Przemysław Litwiniuk since 2011, he has been employed at the Institute of Economics and Finance of the Warsaw University of Life Sciences, and as stated in the justification for this candidature, “he conducts research on the legal nature of contemporary Polish and EU financial instruments used in the implementation of development policy”.
In addition, it was emphasized that “he also deals with the economic analysis of determinants of the rule of law in Poland and abroad”.
The Monetary Policy Council consists of 9 memberswhich are appointed in equal numbers by the Seym, the Senate and the President of the Republic of Poland. Additionally, the council is supplemented by the president of the National Bank of Poland, who is also the chairman of the MPC.
The January meeting of the MPC is the last one at which the council will meet with its current composition: on January 25 the term of office of Eugeniusz Gatnar and Jerzy Kropiwnicki ends. In February, Grażyna Ancyparowicz and Eryk Łon (February 9), appointed by the Sejm, and then Kamil Zubelewicz and Łukasz Hardt (February 20), will say goodbye to the MPC. The term of office of Jerzy Żyżyński ends in March (30.03).
MPC members are appointed for a 6-year term, without the possibility of re-selection.
What challenges will the new MPC face?
It is of course high inflationwhich in December will exceed 8 percent. (according to economists, Pekao will amount to 8.6% on an annual basis).
In 2022, the situation will not improve yet. Tadeusz Kościński, the Minister of Finance, says about 7-8 percent inflation. annually this year. The NBP updated its forecasts to an average of 7.6%. in 2022 and the Polish Economic Institute forecasts that inflation will amount to 7.3 percent.
According to economists, the MPC will raise interest rates tomorrow by 0.5 percentage point, including the main rate from 1.75 to 2.25 percent. However, this may not be the last word of the MPC on monetary tightening. According to forecasts, the MPC may raise the main NBP rate even to 4%. or slightly above this level.