WARSAW (Reuters) – Poland may raise interest rates by 200 to 400 basis points in many economies, Central Bank Governor Joanna Tyrowicz was quoted as saying on Friday. Scientists say they are taking a hawkish stance as the tightening cycle draws to a close.
Rate-setters in Poland are weighing the relationship between inflation, which has soared to its highest level in 25 years, and a slowing economy, prompting some policymakers to say there is limited room for further rate hikes.
“We are discussing raising interest rates by 2-3 percentage points, possibly up to 4 percentage points. . After assessing the range of effectiveness of earlier rate hikes,” state-run news agency PAP was quoted as saying Tyrowicz’s words.
In September, the Central Bank of Poland raised its main interest rate by 25 basis points to 6.75%.
However, Tyrowicz said Poland may need a more “radical” approach.
“Continue 25 – A regular meeting of basis point hikes would not be a sound strategy,” she said.
Still, she said the need for higher borrowing costs did not necessarily mean a rate hike in October.
“There is no question that interest rates must be raised, (but) whether they must be raised at the next meeting is an entirely different question,” she said.
