The Monetary Policy Council (MPC) raised interest rates by 25 base points. The main rate amounts to 5.25 percent.
“The MPC still believes that without tighter monetary policy, inflation won’t get back below the upper level of inflation target of 3.5 percent. Labor market data confirm it, especially those concerning increasing wages”, Grzegorz Maliszewski, Bank Millennium economist said.
MPC members believe that Polish economy has strong fundamentals and develops well. That’s why it won’t be affected by rate increase.
“I expect further rate increases, the next one as early as in March. The risk of substantial slowdown due to the crisis in the USA was not enough to neutralize negative outside developments connected with the labor market”, Grzegorz Maliszewski added.
“The explanation proves that the council is ready for further increases but
much depends on future developments: the situation of the labor market,
inflation and data from the USA”, Agnieszka Decewicz, Pekao economist added.