Governor Glapinski Points To Signs Of Fast, Broad-Based Disinflation

NBP Governor Adam Glapinski holds a press conference after the Monetary Policy Council voted to keep interest rates unchanged yesterday. The official started by saying that the NBP's economic projections are being realised and inflation is easing significantly, with no negative surprises on that front.

• Glapinski adds that "we are far from reaching the inflation target, but there are reasons for optimism." He praises "exceptional" pace of disinflation, while emphasising that there has been nothing unusual about Polish price pressures relative to comparable economies.
• The Governor says that disinflation is spreading to more categories of goods, highlighting that we saw the first significant drop in core inflation in the latest CPI report. He reiterates his familiar view that core inflation will fall with a certain lag relative to headline inflation.
• Glapinski is fairly upbeat about Poland's economic growth, while pointing to a favourable structure of GDP data, at least from the central bank's perspective. He says that weak consumption and ongoing investments will help curb inflation.
• The Governor says that Poland is heading for a "soft landing" scenario and he does not expect a recession, thanks to prudent policy decision taken by the central bank and the government. The official calls it the best possible way out of the current situation.