The NBP governor did not rule out further tightening, as emerging Europe’s largest economy grapples with its highest inflation in two decades.
The National Bank of Poland (NBP) hiked its main interest rate by 75 basis points to 1.25%, raising the cost of credit for the second time in as many months. Analysts polled by Reuters had forecast that the bank would raise its main rate to 1.00%.
With inflation coming in at 6.8% in October according to a flash estimate, many economists had warned that price growth risks spiralling out of control and required decisive action from a central bank that until recently had maintained a dovish stance.
“We will do everything necessary and everything possible to bring inflation back to the NBP target in the medium term,” said Adam Glapinski.
The NBP targets inflation of 2.5% plus or minus one percentage point.