Tyrowicz from the MPC believes that interest rates are too low. Indicates the desired level

In accordance with the decision of the Monetary Policy Council at its January meeting, interest rates were maintained at 5.75%. They have remained at this level since November 2023. The last cut of 25 basis points took place in October last year.

Interest rates must rise

Member of the Monetary Policy Council, prof. However, Joanna Tyrowicz believes that for inflation to come down to the target set by the National Bank of Poland, i.e. to 2.5%. (+/- 1%), then the reference rate must be significantly higher.

– I cannot comment on the latest decision, but so far I have generally voted for an increase in interest rates. I have repeated many times that the interest rate of 6.75%, which was until recently, does not bring inflation to the target in the monetary policy horizon; 7.75 percent has this chance. I don’t change my mind on this matter – said Tyrowicz during the BCC conference “Monetary policy 2024 and prospects for company development”.

The motion to increase interest rates by 200 basis points, submitted during the November meeting of the Council, did not receive a majority of votes, as the NBP previously reported. Joanna Tyrowicz was in favor of an increase on this scale, while 9 votes were cast against it.

Glapiński on inflation: It’s amazing

A different opinion was presented by the president of the National Bank of Poland and the chairman of the Monetary Policy Council, Adam Glapiński, during the monthly meeting on the assessment of Poland’s economic situation.

– Over the last 10 months, inflation has decreased by 12 percentage points. The National Bank of Poland was one of the few to predict this. It is important that core inflation is also decreasing. In December it fell for the tenth time in a row. Psychologically speaking, there is no more inflation – said Adam Glapiński.

– We expect a significant drop in inflation. In the first quarter it may be even faster than we expected. This means that in the near future it may fall to around 3 percent, i.e. the NBP target of 2.5 percent. In March we will be at or very close to the inflation target. It’s completely amazing – added.

– This indicator includes administered prices and anti-inflation shields. This is all changing. But we will be on target, there will be virtually no inflation in March. I repeat this because it makes me very happy – said the president of the National Bank of Poland.