Polish central bank says not time to raise rates, despite 5.4 % inflation

High inflation in Poland is caused by factors that are unrelated to monetary policy and it is not the time to raise rates, central banker Grazyna Ancyparowicz told Reuters on Tuesday, after CPI hit a 20-year high.

Polish CPI was 5.4% in August, a flash estimate from the statistics office found, increasing speculation that Poland’s central bank could follow its counterparts in the Czech Republic and Hungary and hike rates before the year ends.

“Of course inflation is high, we see that and we are not happy, but it is caused by non-monetary factors and as a result monetary policy instruments…will not solve anything,” Ancyparowicz said.

She said policymakers should wait for the central bank’s next macroeconomic forecasts in November before any decision on when to tighten policy.

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