Economics
Polish MPC’s Kochalski Favors Gradual Hikes to Cushion GDP Blow
- Kochalski sees space for hikes; can’t yet specify size
- Pace of inflation fight shouldn’t undermine growth: Kochalski
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Polish monetary tightening should be gradual enough to ensure that economic growth isn’t dented by the fight against inflation, policy maker Cezary Kochalski said.
The 10-member Monetary Policy Council in Warsaw raised the benchmark interest rate by a more-than-expected 75 basis points this month after the war in Ukraine exacerbated the outlook for already spiraling inflation. Central Bank Governor Adam Glapinski then pledged more “quick and decisive” hikes to bring price growth back to the 2.5% target.