Hawkish MPC Member Tyrowicz Says Rate Hikes Would Not Boost Unemployment Rate

NBP's Joanna Tyrowicz told gazeta.pl that raising interest rates did not translate into a higher unemployment rate over the past few quarters and a potential resumption of the rate-hike cycle "would not have that effect either."

• "There is a level of the unemployment rate that is neutral from the perspective of monetary policy. It is now estimated to be considerably higher than the current levels of unemployment. But the neutral [unemployment] rate is only theoretical, raising interest rates did not increase the unemployment rate in Poland in the recent quarters."
• Tyrowicz is the most outspoken hawk in the Monetary Policy Council and was the only proponent of a 100bp rate hike at the recent meetings for which the vote splits are known, at a time when the Council considers a pivot to monetary easing. Her comments came ahead of the release of unemployment data tomorrow, which is expected to see a downtick in the jobless rate to 5.0% from 5.1%.