Polish interest rates set to rise further amid inflation rise -rate setter

Posted on October 7, 2022Comments Off on Polish interest rates set to rise further amid inflation rise -rate setter

© Reuters. FILE PHOTO: People walk in front of the Polish Central Bank (NBP) building in Warsaw, Poland, September 8, 2022. REUTERS/Kacper Pempel

WARSAW (Reuters) – Interest rates are expected to rise further in Poland in line with an expected ongoing increase in inflation, Polish rate setter Ludwik Kotecki said on Friday, following the central bank’s decision to hold rates steady for the first time in months.

“Since we didn’t increase rates this month, we will have this (inflation) projection in November. … It’ll likely lead us to return to a discussion about hikes,” Kotecki said in an interview with Polish private broadcaster Polsat.

He said he expects talks to revolve around hikes higher than 25 basis points.

Wednesday’s decision to leave the main interest rate at 6.75% followed a run of 11 consecutive hikes, and left markets wondering if it marked the end of the cycle or if policymakers were merely taking a break.

Kotecki said he expects inflation to rise above 20% next year and that he would be surprised if the Polish central bank’s main interest rate remained at the current rate of 6.75% if that occurs.

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Comments Off on Polish interest rates set to rise further amid inflation rise -rate setter