Governor Glapinski Reaffirms Hands-Off Approach To FX Rate

Governor Adam Glapinski says that from the point of view of fighting inflation, the current strong level of the exchange rate is positive news, even as its impact is frequently overestimated. He stresses that Poland has a floating exchange rate and the NBP is not aiming at any specific levels, and only steps in to smooth out excessive volatility if needed.

• The official says that the MPC will immediately receive information on the implications of the incoming government's policy proposals from its staff and will react accordingly. However, he does not expect any fundamental changes in fiscal policy, because the "room for manoeuvre" in this space is limited.
• According to Glapinski, the central bank also has limited "room for manoeuvre" in formulating monetary policy, noting that there is growing consensus among MPC members, which also applies to most of the hawkish-leaning Senate nominees.