IMF Advises Poland To Avoid Premature Rate-Cut Talk

The International Monetary Fund published the concluding statement of its 2023 Article IV Mission to Poland, noting that "the main policy challenge is to lower inflation back to the target without unduly weakening the economy."

• The IMF recommended that the National Bank of Poland should "be prepared to raise interest rates further if necessary to reduce inflation to the target by the end of 2025."
• "In the short run, fiscal policy should support the central bank’s efforts to reduce inflation by avoiding a fiscal loosening this year."
• The IMF stressed that "the MPC should consistently communicate that its current focus remains on the maintenance of a tight policy stance, making clear that discussion of rate cuts is premature."
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