POLAND: Hawkish Views Expressed in July Meeting Minutes

Highlights from the July meeting minutes:

• A view was expressed that given the forecast rise in inflation, as well as the recovery in consumer demand and high wage growth, the current level of NBP interest rates was too low to ensure the sustainable return of inflation to the target in the medium term.
• When the impact of energy price increase fade – amid the current NBP interest rates level – inflation should return to the medium-term NBP target, although the impact of higher energy prices on the inflation expectations is an uncertainty factor.
• The Council members noted that fiscal policy remained a risk factor for the inflation outlook.
• Certain Council members were of the opinion that given the anticipated increase in inflation in the coming quarters and the related possible rise in inflation expectations, real interest rates would decrease.

Full release here. Summary of latest comments from NBP officials here.