Poland's monetary policy should remain restrictive - OECD
Monetary policy in Poland should remain restrictive and easing will be possible when data confirm the fading of inflationary pressures and the disappearance of spare capacity in the economy, the Organisation for Economic Co-operation and Development OECD economists estimate in a report on Poland.
"Looking ahead, monetary policy should remain restrictive. There is room for further gradual reductions in interest rates as inflationary pressures diminish on a sustained basis. The earlier appreciation of the exchange rate limits inflationary pressures," the OECD report said
"PPI readings in Poland indicate that goods inflation is likely to be low. However, services inflation remains high and is driven by strong wage growth and a robust labour market," it added.
The report indicated that there is uncertainty about the disinflation process and when inflation will stabilise around the target.
"In this context, monetary policy should remain sufficiently restrictive, but at the same time it should be gradually eased towards a more neutral stance once data confirm that inflationary pressures are fading and spare capacity in the economy is declining," it said.
The MPC maintains the main interest rate at 5.75 percent from October 2023.
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