In the speech of the president of the National Bank of Poland Adam glapiński there were several elements that did not quite correspond to the truth – said on TVN24 Piotr Kuczyński, a financial analyst at xelion. He added that, among other things, the European Union is responsible for 60 percent of the increase in energy prices, and that the NBP has never fought with a strong gold.
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NBP president at Wednesday’s conference he stated that “tightening monetary policy is necessary”. “The council is taking decisive but at the same time prudent steps. It is like treading on a swamp, we think very hard before taking the next step and do it prudently. Just as we started raising rates, the whole cycle, so we proceed prudently. One day we will end this cycle of increases, and one day we will perhaps lower interest rates, although the whole world is in a completely different cycle, ” glapiński explained.
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Kuczyński about NBP president’s conference
– As usual, the speech of the president was a lecture, not the speech of the president of the central bank. (…) There were a lot of elements that did not quite correspond to the truth-said Kuczyński.
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He added: “such as the fact that the European Union is responsible for 60% of the increase in energy prices. We see it on the posters. According to experts, this is 23 percent, not 60 percent. Anyway, this is a much more complicated matter. The president contradicted himself, because he said that the NBP has never fought with a strong zloty, which is obviously untrue.
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He explained that “you can look at the messages after the monetary policy board meeting of the first half of last year, where it is clearly seen that the MPC opts for a weak gold”. “Besides, in December 2020, the NBP specifically weakened the zloty for two days in order to make a bigger profit from foreign exchange reserves.” – Here the president did not tell the truth or forgot-said the analyst.
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– At the same time claiming that the NBP does not have the ability to influence the exchange rate, which is a free rate-the market itself sets it. Then, in the second half of his speech, he seemed to forget what he had said in the first half, he talked about the fact that the NBP would fight very hard for the zloty to be as strong as possible. The zloty listened, exchange rates fell sharply, ” he said.
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– At the moment, more and more people are talking about suspending rates, to freeze, that people will pay too much. Actually grow significantly interest on loans, it is true. I always remind you, when I am asked about this, that on the websites of the UOKiK, the office of competition and consumer protection, there was always a calculator on which you could check what would happen to installments when interest rates rise. If they get to 5 percent, then the payments will increase by more than 50 percent. Probably no one was looking at it, and now there is a cry-said the analyst.
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Kuczynski on the freezing of the WIBOR rateTVN24
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Interest rate increases
The monetary policy council (MPC) at Tuesday’s meeting decided to raise the reference rate by 50 basis points to 2.75 percent. This is the highest level since June 2013. From May 2020 to September 2021, the main interest rate in Poland was the lowest in history and amounted to 0.10 percent. In October, the central bank’s main rate rose from 0.1 to 0.5 percent. This was the first increase since May 2012. In November, the main interest rate rose by 75 basis points. In December, January and February-a total of 150 basis points.
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Glapiński announced that he would urge the council to raise interest rates again. – Certainly, 100 percent I will urge the monetary policy council (…) to tighten monetary policy again at the next meeting. To continue the cycle in a similar way, as it has been happening for five months-said the president of the NBP.
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Adam Glapinski was asked about a recent statement for Bloombergin which he stated that “central bank interest rates should rise more than the market expects”.
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MPC decisions have an impact on the vibor (three-month, six-month), which at the same time translates into loan repayments.
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Read more: How much will increase loan payments? Enumerations
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Glapinski on further interest rate hikesTVN24
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PAP / Adam Ziemienowicz
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Inflation in Poland
The president of the NBP stressed that the goal is to bring inflation to the central bank’s target-2.5 percent. + / – 1% over a period of two years. – We’re doing everything we can to fit in. But by the end of 2023 we are unlikely to fit-said Adam glapiński. At the same time, he warned that this could change the unexpected fact, for example, radically fall in oil or gas prices, which would affect the inflation forecasts.
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PAP
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Second term
At a press conference on Wednesday, Adam glapiński thanked President Andrzej Duda for appointing him as a candidate for the post of President of the National Bank of Poland for the next term. “I would like to thank the president for the trust he has placed in me by appointing me as a candidate for the post of President of the National Bank of Poland for the next term,” said glapiński.
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The current term of Adam glapiński as president of NBP expires on 21 June 2022. The president of the NBP is appointed and dismissed by the Sejm at the request of the president of the Republic of Poland. The term of office of the NBP president is six years. The same person may not hold the office of NBP president for more than two consecutive terms.
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