Governor Sees Inflation Easing Below +10% Y/Y In September, Plays Down Fiscal Concerns

NBP Governor Adam Glapinski's press conference moves to the Q&A session after the main part featured hardly any discussion of monetary policy, with just brief acknowledgement of the central bank's inflation forecasts being realised.

• The Governor concluded his statement by saying that he hopes that inflation will ease below +10% Y/Y by September, although it is "not certain"; in his opinion, this would amount to crossing the Rubicon and would be a symbolic victory in the ongoing fight against inflation.
• He added that if the proposals of hawkish MPC members appointed by the Senate were implemented (they are calling for raising interest rates further), Polish economy could enter a severe recession which would come with an increase in unemployment.
• The Governor says that election campaign pledges have not been too worrying and should not boost inflation by a significant margin. He said that he decided to publish the central bank's calculations of the impact of fiscal proposals of two main political parties on inflation after one of the hawkish MPC members (likely Ludwik Kotecki) told the media that these proposals could significantly boost inflation.