Polish Inflation can reach 20%, says a member of the Monetary Policy Council (MPC) in Poland. The MPC is the body that decides on the level of interest rates in Poland. A cycle of their increases has been going on since October 2021. One of the members of the Council, Przemysław Litwiniuk, believes that the pace of this process is too fast at the moment.
“I believe that this is too quick a process, the one we are dealing with today. Its ineffectiveness is evidenced by the fact that it has no impact on the deposit policy of banks. The fact that the interest rate on deposits is rising is due to political pressure, not monetary policy mechanisms “, he indicated in an interview with TVN24 on raising interest rates in Poland.
Supporter of monetary tightening
“I am a supporter of monetary tightening, but not violently. I believe that interest rates should be raised to a degree that would allow the banking sector stakeholders, including borrowers, to adapt to this phenomenon”, says Litwiniuk.
Polish Inflation can be 20%
The Polish member recalled that a few weeks ago he had expected the inflation to peak in Poland at 17%. on an annual basis. Currently, when asked if inflation may reach 20% this year, he replied: “We cannot be sure of anything”.
The MPC started to raise interest rates in October 2021 and raised them every month. In total, after eight increases – including the May one by 75 basis points – the main reference rate increased by 5.15 points. percent up to 5.25 percent.