The documents we know do not indicate that a reduction in interest rates is justified at this time – says MPC member Przemysław Litwiniuk.
This week, the Monetary Policy Council (MPC) decided to leave interest rates at the current level for the fourth time in a row. Therefore, since November last year, the main reference rate has remained at 5.75%. When will interest rates be cut? It looks like it won’t be any time soon.
Interest rate cut not coming soon?
During Thursday’s press conference, the president of the National Bank of Poland (NBP) and the chairman of the Monetary Policy Council, Adam Glapiński, admitted that there is no prospect of a majority in the Council in favor of reducing interest rates by the end of this year if all data develops as expected by the bank. central.
The opponent of a reduction in the near future is MPC member Przemysław Litwiniuk. – I think that the documents we know do not indicate that the reduction is justified at this point. Each subsequent month carries risks in the opposite direction, I am talking about risks resulting from fiscal policy – Litwiniuk said on Radio Tok FM.
The MPC member emphasized that there is no majority in the MPC in favor of an interest rate increase. – Today I do not see such a majority, but I do see arguments that, under certain conditions, could support correcting this error that occurred in September and October last year – premature and excessive loosening – Litwiniuk said.
Let us recall that in September last year, the Monetary Policy Council decided to reduce interest rates for the first time in over three years. Cuts of 75 basis points were then made. A month later, another cut was announced, this time by 25 basis points.