In the second week of September The Monetary Policy Council he was finally reinstated with a missing member. This position was received by Joanna Tyrowicz, incl. former economic advisor at the National Institute of Economics Bank Polish. After the appointment, the new MPC member spoke to the media about the need for further interest rate hikes.
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How will the suspension of interest rate hikes affect inflation?
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Interest rates up, but not just 0.25 percent?
In September, the MPC raised interest rates for the 11th consecutive time. Always 0.25%, and therefore of the reference rate NBP is 6.75 percent. This is the highest level from the beginning of 2002 to 2003. According to Joanna Tyrowicz, it is still not enough, as she said. in the podcast “Subjectively on finances” by Piotr Samcik.
Monetary policy needs to be even stricter than it would be under normal circumstances. (…) Tariffs will have to be higher and will have to remain higher for a longer time to achieve the same goal
Tyrowicz said quoted by PAP Biznes.
More information from the country on the Gazeta.pl home page
A restrictive fiscal policy, in his view, would be a more rapid increase interest rates. Instead of 0.25 percent. – There is no doubt that you have to put your feet up. Whether they are to be raised at the next meeting is a completely different matter, but there is no doubt that the rates need to be raised today, which are way too low. Duration in the event of an increase of 0.25 percentage points. it wouldn’t be a sensible strategy in subsequent meetings, he added. So by how much should we increase them?
This is about raising the interest rate by 2-3, potentially 4 percentage points. at most, for today, with today’s data, after evaluating the effectiveness of the previous increases
– she added.
End of cycle in October?
Despite Tyrowicz’s words, the eleven-month cycle may soon end. “The MPC needs to be more cautious with rate hikes, inter alia due to the burden on borrowers and the impact of subsequent hikes on the slowdown in the economy. PKB by 2.1 percent quarter after quarter, August retail sales and industrial and construction production data were pretty average, consumer and manufacturer sentiment indicators are lowering “- Mikołaj Fidziński wrote on Gazeta.pl.
Adam Glapiński spoke in this tone at the conference after the September meeting. President NBP said the MPC would not consider any rate hikes or a 25bp hike in interest rates – writes “DGP”. The next appointment is Wednesday 5 October.
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