Glapinski Refuses To Speculate On Future Rate Path, Says '24 Fiscal Plan Is Not Expansionary

Governor Adam Glapinski says that unlike his peers from other countries, he did announce that the tightening cycle is over and the next moves in rates will be down. He says that nowhere else central bank watchers had this "luxury" - but this "luxury" is now over. He merely indicates that rates will decline, but he is not sure about the specifics.

• Dropping further hints on the NBP's reaction function, the Governor dismisses sell-side analyses as inherently biased, noting that banks have an interest in elevated rates. In his assessment, consensus pointing to a 25bp rate cut yesterday was an attempt to exert pressure on the central bank. He says that the NBP pays most attention to the analyses prepared by its own staff and to macroeconomic data.
• The Governor says that based on the spending plan for next year, the government's fiscal policy is "in no way expansionary" and Poland is looking to consolidate public finances. He describes the government's approach as one of "fiscal discipline" and argues that the 2024 spending plan is not inflationary.