Interest rates will certainly grow

opublikowano: 2008-02-20 16:38

Warsaw (Puls Biznesu) – Industrial production was surprising high which means there will be interest rate increases. Economists expect them quite quickly.

Industrial production in January grew 10.8 percent against January 2007, the central statistical office GUS said yesterday. Last year’s average amounted to 9.7 percent. Analysts expected 5.5-7 percent.

“The data confirm that the situation of the companies and the market are very good. They show that economy keeps growing fast, at 5.5 percent”, Jacek Wisniewski, Raiffeisen Bank chief economist said.

GUS said also that PPI rose 2.8 year-on-year and 1.2 percent month-on-month.

The data will encourage members of the Monetary Policy Council to raise interest rates.

“Positive production data take away arguments not to do it. Growin PPI prices support those who want to tighten monetary policy. Interest rates will be raised twice. If economy starts to slow down, even three times”, Jacek Wisniewski said.