The government’s actions make it difficult to fight inflation and postpone the prospect of interest rate cuts

“The recent government decisions, i.e. a higher than expected increase in the minimum wage, by as much as 18% on average, and the solidarity shield, reducing the negative effects of inflation on household disposable income, do not affect our scenario for interest rates in 2022 (we still assume one increase of 25 basis points), indicate, however, that the realization of the announcements of some members of the Monetary Policy Council about the beginning of interest rate cuts in the second half of the 2023 is burdened with an increasing risk“- it was written in the bank report.

According to the latest announcements by the government, from January 1, 2023 the minimum wage will increase to PLN 3,490 gross, and from July 1 – up to PLN 3,600 gross. Earlier, the government proposed that from January 1, 2023 the lowest gross salary should be PLN 3,383, and from July 1, 2023 – PLN 3,450.

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