Presidential runner slams central bank for keeping rates on hold
Rafal Trzaskowski, the presidential candidate of the centrist Civic Coalition (KO), the main ruling party, has criticised the head of Poland's central bank NBP for keeping interest rates unchanged.
On Thursday, the Monetary Policy Council (RPP), the Polish central bank's rate-setting body, kept the reference interest rate at 5.75 percent. NBP has kept interest rates on hold for over a year despite falling inflation, citing upside risks to inflation caused by the government's removal of key subsidies to households.
During a press conference held on Friday, Trzaskowski, who is also the mayor of Warsaw, characterised Adam Glapinski, the NBP president, as "not independent and acting to the detriment of Poland's economy... in order to obstruct positive changes prior to the election."
Glapinski is seen as an ally of the former ruling party, the socially-conservative Law and Justice (PiS).
Trzaskowski added that it was "unbelievable" that the RPP reduced interest rates during the PiS government with inflation reaching over 11 percent but refused to do so now, with the average annual inflation at 3.5 percent in 2024.
He said that Poland's economy required a new impetus for growth, yet it is hindered by "politically-motivated decisions." He contended that Polish citizens were currently facing the highest interest rates and repayment obligations in Europe.
The decision made in January marked the thirteenth consecutive instance in which the RPP opted to maintain interest rates, following two consecutive cuts in September and October 2023, just before the November 2023 parliamentary elections which PiS lost.
The NBP's inflation target is 2.5 percent plus/minus one percentage point.
The current government of Donald Tusk is seeking to bring Glapinski before the State Tribunal, alleging that he prioritised political affiliations over the economic interests of Poland during the tenure of the PiS party. (PAP)
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