The President of the National Bank of Poland, Adam Glapiński, announced during a press conference on Thursday that inflation in Poland will continue to rise, predicting an increase of 1.6% in July and another 1.3% in January 2025. Despite previous successes in reducing inflation, Glapiński emphasized that there is currently no possibility of lowering interest rates.
President of the National Bank of Poland, Prof. Adam Glapiński (photo: NBP)
The Monetary Policy Council announced that interest rates would be maintained at 5.75%. Adam Glapiński noted that this decision was not a surprise and was in line with market expectations. Glapiński said that with rising inflation, the possibility of reducing interest rates may not appear until 2026 at the earliest, when inflation will start to fall.
Increase in energy prices and its consequences
The increase in energy prices is one of the main factors influencing the forecasted increase in inflation. Glapiński emphasized that higher energy costs reduce the competitiveness of Polish companies, which encourages some enterprises to relocate their operations to countries with lower energy costs. The head of the NBP also criticized the climate policy of the European Union, which contributes to the increase in energy prices and limits the competitiveness of European companies.
Wage growth and savings
Prof. Glapiński pointed out that Poland maintains a double-digit increase in wages, which contributes to the dynamic growth in consumption. However, a significant portion of income is saved, which may affect the future pace of economic growth. The President of the NBP also drew attention to the negative impact of the economic slowdown in the European Union on the Polish economy.
NBP graphic
Source: money.pl
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