Inflation jumped to 3 percent, the level it was last time in April 2005. Investors were not surprised as this was exactly forecast by the ministry of finance.
“Fuel prices jumped over 7 percent while food prices – over 6 percent. Excluding increases in these categories, inflation would grow from 1.2 to 1.3 percent”, Piotr Kalisz, Citibank Handlowy economist stressed.
The majority of economists are sure that there will be an interest rate increase in November. Some members of the monetary policy council also admit that it is necessary.
“In the middle of 2008, inflation will get close to 4 percent. Then, it should slow down a little bit”, Piotr Kalisz said.
Marcin Mroz, Fortis Bank chief economist, expects that the main interest rate will increase to 6 percent, up from 4 percent early this year and 4.75 percent today.
Rate increases influence the credit market. The
monthly dynamics of credits given to households dropped in October to 1.7
percent, down from 2.2 percent in September and 3-4 percent in previous months.
Credits for companies which in September grew nearly 2 percent, slowed down to
1.2 percent, the National Bank of Poland’s data showed.