The two-day meeting of the Monetary Policy Council begins on Tuesday. MPC will decide on interest rates.
The January meeting of the Monetary Policy Council will begin on Tuesday. For the first time in almost 3 years, the Council will meet for a two-day meeting.
The Monetary Policy Council will make and announce a decision on whether the interest rate hike cycle, which should stop the rapid rise in inflation in Poland, will be decided and announced on Wednesday.
Increasing interest rates
Recall that the cycle of raising the interest rate of the National Bank of Poland started in October 2021 and lasted 11 months, increasing the installments on loans and borrowings.
During the year, the main reference interest rate was raised 11 times and increased from 0.1 percent to 0.1 percent. to 6.75 percent In the fall of 2022, the Council decided to put the increase on hold, although many say it is not a permanent end to the increase as there is still room to maneuver that could help bring inflation down.
There will be no surprises
Banking analysts expect the rise in interest rates to be maintained at the current level. It is all the more likely that the January meeting of the IGC will take place before the Central Statistical Bureau publishes data on December inflation.
“The decision of the Monetary Policy Council in December to keep interest rates unchanged for the third time in a row was in line with the reluctance to further tighten monetary policy, expressed in public statements by the President of the NBP and some members of the Council. despite persistently high inflation and a low likelihood of inflation returning to target over the monetary policy horizon,” the economists wrote in a commentary.
Economists at ING Bank Śląski also believe that the Board will leave interest rates unchanged. “The lengthening “pause” in the interest rate hike cycle suggests that it has de facto ended. The MPC is poised for further increases in inflation in January and February 2023, and the pace of disinflation since March this year and the PLN exchange rate are key to the monetary policy outlook.
Source: Wprost
