Monetary Policy Council Cautions on Inflation Amid Uncertainty in Poland’s Economy”.

Poland’s central bank governor, Adam Glapinski, has expressed caution about the potential rise in inflation despite a recent decrease. This is due to the higher food taxes and the possibility of removing energy price limits. According to a Bloomberg survey of economists, the central bank is expected to maintain its interest rates at 5.75% for the seventh consecutive meeting.

In March, Poland’s annual inflation rate dropped to 1.9%, lower than market expectations of 2.2%. However, the Monetary Policy Council (MPC) still sees significant uncertainty regarding inflation dynamics. They are closely monitoring the impact of fiscal and regulatory policies, as well as the pace of economic recovery and labor market conditions on inflation.

Finance Minister Andrzej Domanski has suggested that lower interest rates could benefit the budget and economy, but only a minority within the MPC supports rate cuts at this time. They are waiting for confirmation that the government’s energy pricing plans will not lead to a resurgence in inflation before considering further adjustments. Despite their caution, Glapinski and his colleagues remain hopeful that they can keep inflation under control through careful monitoring and management of monetary policy instruments.