MPC Hawk Tyrowicz Reiterates Her Call For Higher Interest Rates

Joanna Tyrowicz, the most hawkish member of the Monetary Policy Council, reiterated her call for higher interest rates in a LinkedIn post, arguing that monetary tightening would not cause massive unemployment or defaults or substantially change the situation of the Finance Minister.

• The official wrote that although the labour market or budget matters are outside of the central bank's remit, there is no reason to expect that raising the key policy rate from the current level of 6.75% to 9.00% would have any devastating consequences.
• Tyrowicz said that monetary tightening would allow Poland to reduce lending activity, cool the labour market and wage growth, convince households not to reduce their savings and encourage enterprises to delay some investments.
• Her call can be expected to fall flat as most of her colleagues from the MPC are already talking about the timing of the first rate cut as the NBP is pivoting towards the easing cycle expected to start this autumn.