“Seems like the first the incentive in the form of rising inflation to raise rates will be clearly diminished. (…) The economic growth in Q2 was clearly over 5% year-on-year, but the quarter-on-quarter decline was 2.3%. This shows that the economy is already slowing down in various places. A dramatic collapse in interest in mortgage loans. (…) The situation (…) does not leave much freedom for the MPC to make decisions. I think that, of course, Poles should also reckon with some rate hikes. Saying some, I mean the effects of our next decision-making meeting at the beginning of September, maybe even in October. It seems that the end of the interest rate cycle that has been going on since October 2021 is now near“- said in Radio Maryja MPC member Henryk Wnorowski. His words are quoted by PAP Biznes.
See also: Economists. The MPC will not raise interest rates above 7%. But there is a condition
Wnorowski also presented his inflation predictions. “I think when it comes to August, we should expect that this reading will be, say, at the level of July reading, somewhere around 15.6 percent, maybe 15.7 percent. (…) Food, crude oil – in my opinion, this will lead to a slight drop in inflation from September, but it is far from full happiness“- he said.
Recently, another MPC member, Przemysław Litwiniuk, also commented on possible interest rate hikes. When asked if there is still room in Poland to raise interest rates, he said on the radio Tok FM that in his opinion “unfortunately yes”.
The next decision-making meeting of the MPC is scheduled for September 7. On August 23, the Council meets in a non-decision meeting.