Governor Says Policy Is Very Restrictive, Rules Out Any Imminent Rate Adjustments

Governor Adam Glapinski says that real interest rates are currently positive, which is the main disinflationary factor in Poland at the moment. On top of that, cost pressures are low, strong exchange rate supports disinflation, while inflation expectations are falling - still, cutting interest rates is "out of the question."

• The Governor says that the NBP is under pressure to cut rates from the same critics who earlier called for monetary tightening. He stresses that the central bank won't bow to this pressure, adding that nobody is entitled to assess monetary policy through political and legal means - referring to the proposal to put him on trial.
• The Governor repeatedly rules out cutting interest rates, while noting that rate hikes are off the table as well. He says that the central bank's policy is "very restrictive," possibly most restrictive in Europe. He adds that this is partly because the government's fiscal policy is very loose.