The Monetary Policy Council (MPC) reduced interest rates at the beginning of March, including the reference rate from 4%. up to 3.75 percent The decision was commented on TVP Info by one of the MPC members, Ludwik Kotecki.
Continued below the video:
Interest rates in Poland. Will there be another reduction?
In March, the first interest rate cut this year took place and – according to Ludwik Kotecki – the last one. As an RRP member assessed, the Council probably cut rates for the last time this year in March it will remain in wait&see mode for the next few months – it will neither increase nor decrease interest rates.
“I would not like to talk about increases today. For now, I will say that I rather rule out further reductions,” Kotecki said.
Interest rates and inflation in Poland
“At the very beginning of this conflict, when it began, we decided to cut interest rates. It seems that this was actually the last interest rate cut this year,” added the MPC member.
He noted that such a scenario may materialize even when the war in Iran ends.
“We will see some effects of this war. Inflation will certainly move. March inflation will certainly be significantly higher than February,” he said.
He recalled that in February inflation was 2.1 percent, and now experts' estimates indicate around 3 percent.
See also: Bad news for borrowers. Expert on interest rates
MPC member: we will just watch
“So in such a situation, the Monetary Policy Council will probably refrain from making any decisions for now. This will be a so-called wait and see strategy, i.e. we will simply watch what happens. We will respond on an ongoing basis. And I think the Council will do nothing for the next few months. It will neither lower nor increase interest rates,” Kotecki added.
Source: PAP Biznes. TVP Info
