Polish Central Banker on Interest Rates

WARSAW (Reuters) – Polish central banker Joanna Tyrowicz still does not see any grounds for interest rate cuts given the continued overshoot of the inflation target, she told a private radio station, Tok FM, on Thursday.

The National Bank of Poland has kept its main interest rate on hold at 5.75% since October 2023. Central bank governor Adam Glapinski stated last week that it was far too early to discuss easing policy.

Annual inflation in December was recorded at 4.7%, slightly below a flash reading, but still well outside the central bank’s target range of 1.5% to 3.5%.

“I don’t see any grounds for cuts. … We are not cutting rates because we are not at the target. We are not bringing inflation to the target,” said Tyrowicz, regarded as one of the hawks on the Monetary Policy Council (MPC).

Tyrowicz has been the only MPC member to support raising interest rates, according to the most recently published voting records.

She also commented on the potential impact of economic decisions from the new U.S. administration, saying they should not have a direct effect on Poland’s economy. “Very important for our economy is the improvement of the situation of our global trading partners, especially the European ones,” she remarked.

“If they suffer any negative consequences of these changes, this may have some negative indirect implications for our economy.”