Central Bank’s Monetary Policy Hinders High Economic Growth, Says Polish PM

Warsaw, August 13 – The restrictive monetary policy of Poland’s central bank is making it difficult for the country to achieve strong economic growth, Polish Prime Minister Donald Tusk stated on Tuesday. This statement was reported by TASR, based on information from Reuters and PAP.

“There is no doubt that the restrictive policy of Central Bank Governor Adam Glapinski does not facilitate Poland’s ambitious goal of achieving one of the highest economic growth rates in Europe,” Tusk said during a press conference when asked about the potential extension of the mortgage moratorium until 2025. The National Bank of Poland (NBP) has kept its main interest rate at 5.75% since October 2023 and may maintain it at this level until 2026.

Glapinski mentioned at a press conference in July that given the expected rise in inflation, there would be room to lower interest rates only in 2026.

Poland’s inflation rate increased to 4.2% in July from 2.6% in June after partially lifting the freeze on energy prices at the beginning of the month.

“It now seems increasingly clear that decisions regarding interest rates are likely influenced by Glapinski’s negative stance towards the current Polish reality,” Tusk told reporters.

The new Polish government has accused Glapinski, an ally of the former ruling party Law and Justice (PiS), which was in power from 2015 until last December, of prioritizing political loyalty over the interests of the Polish economy.

In March, a group of ruling coalition MPs submitted a preliminary proposal to the Sejm, the lower house of parliament, to bring Glapinski before the State Tribunal on charges of violating the law and the Polish constitution.

Tables: Key Economic Indicators in Poland

Interest Rates and Inflation

Political and Economic Context