Polish interest rates should rise further

MNB

Poland’s Monetary Policy Council (MPC) should raise interest rates further and a hike at an upcoming April meeting may be needed, MPC member Dariusz Filar was quoted as saying on Thursday.

Filar, seen as a hawk on the 10-strong panel, said he believes real interest rates, adjusted for inflation, should stabilize at about 2% as long as fast economic expansion continues. “If trends in the economy remain unchanged ... then another interest rate hike will be needed,” Filar told daily Parkiet. “Real interest rates in a fast growing economy, and this is what we have now, should not diverge too much from 2%... still the real rate is below 2%.” During its current tightening campaign the council raised the key interest rate to 5.75% in March, from a record low of 4% in April 2007 in order to fight inflation and wage pressures.

Polish inflation eased to 4.1% in March from 4.2% in February, but remained well above the 2.3% seen in April 2007. (Reuters)

ADVERTISEMENT

Századvég raises GDP forecast to 7.8% Analysis

Századvég raises GDP forecast to 7.8%

Opposition parties to begin PM candidate primaries Elections

Opposition parties to begin PM candidate primaries

New editor-in-chief at Betone Studio Appointments

New editor-in-chief at Betone Studio

Budapest leaders make public transport free for under-14s City

Budapest leaders make public transport free for under-14s

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.