Interest rates to stay high
Bogusław Grabowski of the Rada Polityki Pieniężnej monetary council said that having inflation between six and ten percent is not acceptable for the RPP. This means that high interest rates are here to stay for a very long time.
Bogusław Grabowski said that the RPP intended to follow an 'iron discipline' in its financial policies. He claimed that the effects of this would not be felt so hard as they would in a developed economy because borrowing is up to three times less here in Poland.
Members of the RPP claim that it is unfair to blame them for the economy slowing down. They claim that economic growth depends on government policy and that is where blame should fall. Furthermore they state that the fight with inflation could be a lot less painful if the budget deficit and public sector borrowing were reduced.
Bogusław Grabowski says that the government needs to be more efficient, limiting the power of monopolies and making the labour market more elastic.