Biznes Fakty
Glapiński on interest rates: the MPC's attitude has changed
– The majority of the Monetary Policy Council has shifted its perspective on monetary policy – stated Adam Glapiński, the president of the National Bank of Poland, during a press briefing.
– While there is a decision to keep interest rates steady, it is clear from our statement following the meeting that the MPC’s stance has significantly evolved. When I refer to the Monetary Policy Council, I mean the majority – Glapiński remarked.
NBP President on interest rates
The leader of the National Bank of Poland indicated that the Council is leaning towards a reduction in interest rates.
– We could say informally that we have received an influx of very positive data, but a singular occurrence of this data is insufficient for the Council to reach a decision. It is inclined towards lowering rates, but there needs to be validation from subsequent data indicating that this trend persists, rather than being a one-off event – explained the NBP president.
The president of the central bank mentioned that if optimistic indicators are validated, he would not dismiss the possibility of proposing a rate cut. He noted that a possible reduction could take place in May, June, or July. He also emphasized that he believes this should not lead to a cycle of reductions. – I think there should be a one-time adjustment to curb inflation – Glapiński asserted.
Inflation in Poland
The head of the Polish central bank pointed out that inflation continues to be at a high level, yet following the revision of data by the Central Statistical Office and encouraging preliminary data for March, it is considerably lower than what the National Bank of Poland had anticipated.
He added that concurrently, core inflation has significantly decreased, there are indications of a deceleration in wage growth, and we are experiencing lower oil prices, which is lowering the forecasted inflation trajectory.
Glapiński concurrently emphasized that the Monetary Policy Council is committed to sustainably reducing inflation to meet the NBP target in the medium term.
Interest rates in Poland
During its meeting that concluded on Wednesday, the Monetary Policy Council opted to keep the interest rates of the National Bank of Poland unchanged. The primary interest rate of the NBP, which is the reference rate, remains at 5.75%.
The Lombard rate has been maintained at 6.25 percent per annum, the deposit rate stays at 5.25 percent, the rediscount rate for bills of exchange is at 5.8 percent, and the discount rate is at 5.85 percent per annum.
The Monetary Policy Council last adjusted interest rates in October 2023, when it lowered the NBP rates by 25 basis points to their current position.
