Free Trial

Glapinski Says NBP Wants To Fight Inflation Without Stoking Recession

NBP

Governor Adam Glapinski says that if the central bank did not lower its policy rate to 6.00% from 6.75%, real interest rates could turn positive at the end of this year, when inflation may ease to +6%-7% Y/Y. He says that in these conditions, monetary policy would be unreasonably restrictive, "freezing the economy to death", adding that the central bank does not want to stoke a recession.

  • Governor Glapinski now proceeds to discussing the external environment, pointing to a "radical" economic slowdown in the eurozone and Germany in particular. He says that the main engine of Poland's growth - exports - has been turned off.
  • Glapinski reveals that MPC members nominated by the opposition are still calling for interest-rate hikes, which he says would be a rookie mistake. He adds that Poland has now moved to "moderate" from "high" inflation, and may have "creeping" inflation towards the end of this year, which should be celebrated as a great success.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.