Hawkish MPC Member Kotecki Reiterates Call For Greater Focus On Containing Inflation

NBP's Ludwik Kotecki told an economic forum that inflation needs to be brought to the target as soon as possible and otherwise elevated inflation will become persistent. The official noted that the general macroeconomic policy, not just monetary policy, should be oriented towards achieving that goal.

• "What should happen as soon as possible is taking anti-inflationary policy seriously. I do not mean just monetary policy. All macroeconomic policy should focus on one aim, which is bringing inflation ideally to the target level or very close to the target."
• "Getting from [an inflation rate of] 18% to 12% may be fairly easy, but getting from 12% to 5%, 4%, 3% may be a very difficult process and it may take several years if nothing changes in the macroeconomic policy."
• The MPC member warned that high inflation is becoming entrenched in the mentality of price setters, which is manifested among others by the inclusion of inflation clauses in all sorts of contracts.