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June 27, 2022
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President of the National Bank of Poland Adam Glapiński: inflation is rising due to external factors –

NBP President Adam Glapiński maintains: we do not have to be afraid of rising inflation and everything is under control. – Inflation is increased by external and largely temporary factors, so there are no indications to change interest rates He told the portal Salon24.

NBP President Adam Glapiński: let’s not be afraid of inflation

As Glapiński claims, “inflation is increased by external and largely temporary factors, so there are no indications for a change in interest rates. “

– On the other hand, I promise that if only there are premises, e.g. when inflation is driven by demand factors, and strong economic growth continues, we will raise interest rates – He said. – Only when inflation starts to rise, caused by an excessive increase in demand and an excessive increase in wages in relation to labor productivity, and this demand will not be followed by supply. Then there may be an increase in prices driven by good economic conditions, and then we can think about tightening the macroeconomic policy. I emphasize the macroeconomic, i.e. fiscal or monetary – added.

Why is inflation rising? In his opinion, this is the effect of, among others jump in fuel and energy prices.

– More than half of this is due to increases in fuel prices, waste disposal prices and electricity prices. Inflation excluding these categories amounts to 2.5%, so it is in line with our target He explained.

Banks want higher interest rates.

He suggested that commercial banks want the MPC to raise interest rates because they can profit from it.

– They [bankierzy] of course, they always want the highest possible interest rates, because that’s where the banks’ income comes from. But the NBP must act in the interest of the entire economy. Moreover, today commercial banks benefit greatly from the fact that borrowers did not go bankrupt thanks to the easing of monetary policy. It is worth reminding about it – stated.

By the way, he denied the information that the NBP had imported all the gold deposited with the Bank of England into the country.

The initial situation was that we had 100 tons in the Bank of England, and in Poland we had trace amounts. We decided to buy 123 tons in different places and the 100 tons we had in England are still there. If some say that we imported the whole thing from England, it is imprecise because we bought new quantities without touching the others – said Glapiński.

When asked about the pace of Poland catching up with richer European countries, he replied:

If we look at the real purchasing power of wages, i.e. the purchasing power parity, we will overtake Italy within 10 years, if that is somebody’s reference point. And we will reach the German level today in about 20-25 years, but they will probably be further ahead. Although it is impossible to predict everything completely.

When asked whether he would be re-elected for the next term of the NBP head, he replied:

About myself I can say that I am not a candidate for private banks, big capital, rich people or international financial markets. I am a candidate who is in favor of the fastest possible economic growth and little diversification in terms of social wealth.

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