Kotecki Warns Fiscal Measures Will Boost CPI, Tyrowicz Sees PLN Appreciation As Short-Lived

NBP's Ludwik Kotecki tells money.pl that new fiscal measures announced by the government amid the ongoing election campaign may boost CPI inflation by about 2 percentage points, which makes any near-term rate cuts less likely.

• The official adds that rate cuts may not happen until the end of 2025, while the NBP would need to consider hikes if inflation accelerates.
• His colleague Joanna Tyrowicz speaks on TOK FM radio. She says that the recent PLN appreciation is "very beneficial" for the disinflationary process but it is probably unsustainable.
• Note that Kotecki and Tyrowicz are hawkish dissenters in the Monetary Policy Council and their views have consistently deviated from those held by the majority led by Governor Adam Glapinski.