For the first time this year, the industrial production in Poland was not a double-digit number. In May, it amounted to 8.1 percent. Experts hoped for more.
“The results are weaker then expected but one could expect that production dynamics would fall. The basis is high, and we had the long May weekend”, Marta Petka, Raiffeisen Bank economist said.
Marcin Mroz, Fortis Bank chief economist, believes that the second quarter will be worse for the economy than the first one when the GDP growth amounted to 7.4 percent.
“But the situation won’t be bad. The GDP growth will amount to 6.5 percent”, Marcin Mroz said.
Production data below expectations is usually a reason not to raise interest rates. Not this time, however, Ryszard Petru, Bank BPH chief economist believes.
“The situation starts to be dangerous. Production dynamics fall and wages grow even faster. In June, production dynamics will also be low (about 7 percent) while wage growth will be high. An interest rate increase in June and another one in July are probable”, Ryszard Petru said.
Marta Petka on the other hand believes that the MPC will wait with such decision till October.