Poland has no alternative to aggressive monetary tightening as the government’s actions to control rising prices can only further fuel inflation, a new member of the country’s central bank has said.
Tax cuts on everything from fuel to food could cause a delay in price increases, Ludwik Kotecki told Bloomberg, noting that the measures already represent high budget spending.
This burdens the central bank with the task of accelerating interest rate hikes to curb inflation, he said.
“Poland can not afford to stop raising interest rates,” Kotecki said in his first interview as a member of Poland’s central bank.
“Our monetary approach should be more aggressive than it was, if we were dealing with an appropriate sample of fiscal and monetary policy,” he added.
Kopeck, a former deputy finance minister and the country’s representative to the IMF, attended the first meeting last Tuesday, when the board raised the nine-year high to 2.75%.
Governor Adam Glapinski said he would seek support for a further increase of 50 basis points in March, signaling that a key interest rate of 4% or higher would not “hurt” the Polish economy.
Source: Capital

Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.