Central bank leaves rates unchanged, as expected

Poland’s central bank left interest rates unchanged on Wednesday, keeping the cost of credit low to solidify the economic recovery from the COVID-19 pandemic despite inflation surging to a two-decade high.

Bets on a rate hike before the end of the year increased last week, when a flash estimate from the statistics office showed inflation rising to 5.4%, but in an interview published on Monday Central Bank Governor Adam Glapinski reiterated his view that it was still to risky to raise rates.

“The decision… is no surprise, especially after the interview of President Glapinski published on Monday, in which he clearly states that it is too early to reduce accommodation in monetary policy,” said Piotr Bielski, director of the economic analysis department of Santander Bank Polska.

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