Poland’s central bank governor, Adam Glapinski, remains cautious about the potential for inflation to rise again due to higher food taxes and the possibility of removing energy price limits. Despite a recent decline in inflation rates, the central bank is expected to keep its interest rate at 5.75% for the seventh consecutive meeting, as reported by a Bloomberg survey of economists.
In March, Poland’s annual inflation rate fell to 1.9% from the previous month’s 2.8%, surprising market expectations of 2.2%. However, the Monetary Policy Council (MPC) notes significant uncertainty surrounding inflation fluctuations, particularly driven by fiscal and regulatory policies, economic recovery pace, and labor market conditions in Poland. While Finance Minister Andrzej Domanski has suggested lower rates could benefit the economy and budget, only a minority within the MPC supports further rate cuts until the impact of government energy pricing plans on inflation is confirmed.