On Wednesday, the MPC decided to reduce interest rates by 0.5 percentage points. up to 5.25 percent in the case of the main rate. As Henryk Wnorowski says, this does not mean entering the “highway to the reductions”. He noted that Subsequent changes may take place at the earliest in July and should take place gradually, in standard steps of 0.25 PRC points.
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The reason for this approach is deep concerns related to the persistence of inflation in Poland. Henryk Wnorowski drew attention to several key factors affecting the economic situation of the country. Loose fiscal policy and a growing deficit came first – Poland is the second country in the EU in terms of the amount of the budget deficit.
The second important factor are high electricity prices, which in his opinion can additionally affect the level of inflation and constitute a long -term challenge for the economy.
In a similar tone on Thursday, the President of the NBP and the chairman of the Republic of Poland Adam Glapiński spoke. The account of his speech can be found here.
In the context of economic forecasts, Henryk Wnorowski admitted that The script of economic recovery has become less expressive than expected in the March NBP projection.
See also: Banks earned a lot of money again in March. But it was probably the last such good month
As the President of the NBP informed earlier, the issue of compulsory reserve parameters will also be raised during the June MPC meeting. The interest rate on this reserve, currently 5.25 percent, may be the subject of discussion and possible changes. Henryk Wnorowski suggested that the reduction of the reserve interest rate can be considered, although it requires detailed analyzes.
