It seems that the peak of inflation is already behind us. Wednesday's data of the Central Statistical Office shows that in April consumer inflation in Poland fell to 4.2 percent. year on year with 4.9 percent in the previous three months. Citing statistics, we wrote in Business Insider that it was good news because Such a reading gives the ARMY of the MPC for a reduction in interest rates as early as next week.
The situation was commented on in social media by Donald Tusk. “Inflation in April is clearly lower than forecast by experts! The fight against the polar time of PiS brings results. It is high time, ladies Glapiński, to lower your feet. People and companies are waiting!” – the Polish prime minister wrote on the platform X.
Prime Minister Donald Tusk is increasingly pressing on the head of the NBP, just like Donald Trump does the president of the federal reserve. It is not surprising, because the lower interest rate at the central bank is cheaper loans, greater satisfaction of citizens and additional fuel to the increase in the economy.
When loans become cheaper, both consumers and enterprises are more willing to incur financial obligations. Consumers more often decide to install installment, mortgage loans or financing of larger expenses, which increases the demand for goods and services. In turn, companies are more likely to invest in development, modernization and new projects, because the cost of financing these activities is lower.
In addition, lower interest rates reduce the interest rate on deposits and other safe forms of saving, which may lead people to greater consumption or searching for more risky investments. All this translates into an increase in economic activity, and in effect – to increasing the rate of economic growth.
A few days ago, NBP President Adam Glapiński maintained his position from the last press conference. In a speech, he pointed out that the prospects for the return of inflation to the goal are drawing more optimistic than before, and it can therefore be assessed that in the near future there will be space to reduce interest rates.
See also: President Adam Glapiński took the floor on interest rates
