Poland’s mood for monetary tightening may ease after the rise of the zloty and indications that record inflation is limited for the time being, according to a board member. of the central bank.
Wieslaw Janczyk, a new member of the country’s interest rate committee, said the prolongation of the rule on cuts in fuel and food contributions and the currency rally had affected double-digit inflation, which is something that will be included in decision-making by the central bank.
“I could assume that there will be a more careful approach to monetary policy in the coming meetings,” Janczyk told Bloomberg News in his first interview as a member of the monetary policy council.
As inflation rises in the region, Warsaw policymakers have raised six consecutive interest rates since October, including a 75% basis point increase this month to 3.5%, a high nine years old.
As Janczyk, a former deputy finance minister and lawmaker in the ruling Justice and Justice Party, said, Russia’s invasion of Ukraine “clearly” affected the March 8 move.
Although the central bank expects inflation to rise above 10% this year and next, due to rising fuel and food prices, the zloty has deviated from this trend.
After falling briefly below the psychological level of 5 zlotys against the euro last week, the Polish currency has risen more than 6%.
The rally proves that “our monetary policy has a real and binding impact on the exchange rate of the Polish currency, even in a situation of extremely changing conditions,” he said.
Source: Capital
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