Poland's rate cuts discussion must be postponed due to regulations bumping up CPI - c. bank governor
Regulatory decisions that drive up inflation change the conditionality of monetary policy and indicate that discussion of possible interest rate cuts must be postponed, Poland's central bank NBP governor Adam Glapinski told a press conference. He added that labour market conditions are an obstacle.
"These regulatory decisions fundamentally change the monetary policy's conditionality, above all they clearly indicate that we have to postpone the discussion about possible interest rate cuts for some time yet," the NBP governor pointed out.
Adam Glapinski stressed that Poland still experiences double digit wage growth without prospects of deceleration.
"We still have double digit wage growth. 10 percent now and even higher before and for now there is no signal of a rapid deceleration in wage growth," he said.
"Unemployment is at a record low, the labour market is tight, and this obviously creates the ground, given other circumstances, for wage growth. On top of that, economic growth is set to accelerate this year, which is good that it is accelerating, but from the point of view of inflation and wages, this is a proinflative factor," he added.
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