Will there be further interest rate cuts? Glapiński spoke up
If the good data continue, I see room for further interest rate cuts, said NBP President Adam Glapiński.
On Wednesday, the Monetary Policy Council (MPC) decided to reduce interest rates by 0.25 points. percent Thus, the main interest rate dropped from 4.75 to 4.50 percent. The decision of the committee is good news for borrowers, as mortgage or business loan installments will be lower.
Adam Glapiński, the president of the National Bank of Poland (NBP) and the chairman of the Monetary Policy Council, spoke about the decision on Thursday. During the press conference, Glapiński pointed out that inflation in Poland was within the range accepted by the central bank for the third month in a row. According to the preliminary estimate of the Central Statistical Office, it was 2.9 percent in September. An identical reading was recorded a month earlier. The head of the NBP emphasized that the inflation prospects for the coming months had improved. Current forecasts indicate that inflation in the last quarter of this year will remain close to 3%.
Glapiński mentioned the act signed by President Karol Nawrocki freezing energy prices until the end of the year. He also pointed out the threats that may threaten the stabilization of inflation. He mentioned the inflationary pressure coming from outside, the still high dynamics of wage growth (although it is noticeable that it is slowing down) and the threats to economic growth.
Will the Monetary Policy Council lower interest rates for the fifth time?
This week, the Monetary Policy Council cut interest rates for the fourth time this year. Are further cuts possible? The President of the NBP emphasized during the conference that the decision on this matter will be made from meeting to meeting, just as, for example, the European Central Bank does. – As I see it now, there may be such space – if these good data continue – said Glapiński.
The head of the central bank added that MPC members also “see room for cuts, but they do not know yet when it will happen.” He reminded that a new inflation projection will appear in November. – This is our “sacred” document, a deep analysis of the economy and basic trends, month by month, quarter by quarter and year by year. And based on this projection, we will make a decision in November – Glapiński emphasized.
The President of the National Bank of Poland stipulated that interest rates cannot decrease indefinitely.
