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Governor Glapinski Says Further Monetary Tightening Would Be Irrational Now

NBP

NBP Governor Adam Glapinski says that further monetary tightening would be irrational at the time when inflation is falling, as it could lead to an unnecessary recession. The Governor denies that pausing interest-rate hikes amounts to a resignation from fighting inflation and argues that earlier tightening affects the real economy with a lag.

  • Glapinski says that disinflation is supported by the recent PLN appreciation. He adds that the NBP does not target any particular level of the exchange rate and intervenes in FX markets very rarely, only when there is an urgent need to smooth out excessive volatility.

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