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HomeEconomyRate-setter Kotecki says Poland's CPI is likely to remain at double-digit levels...

Rate-setter Kotecki says Poland's CPI is likely to remain at double-digit levels through 2024

WARSAW (Reuters) – Poland’s gross domestic product is likely to fall in the 2022 first quarter and inflation may remain in double digits until 2024 To conclude, rate-setter Ludwik Kotecki said on Monday that he believes rate hikes should be quicker and stronger to curb price growth.

The central bank raised key interest rates by 25 ) basis points to 6.20 % earlier this month , the smallest increase so far in the current rate-hike cycle, as it said it expects slower growth and lingering inflationary pressures.

“I think those excursions are too small… We keep going up like this every month. We’ve done 11 ) hike, I’m afraid we might end up with 20 such a tiny hike,” Kotecki told private broadcaster TVN 20 .

“I think the better approach is to do more aggressive rate hikes earlier in the year.”

He pointed to the level of core inflation – around % – Indicates that interest rates at sa i level would be “actually very effective at slowing inflation”.

“We won’t have less than 10% inflation I’m worried until 2024 is over,” He says.

He added that after the decline in GDP in the second quarter, he expects that in 2022 and 2023, especially in the first quarter GDP fell.



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