Adam Glapiński made the declaration in parliament on Thursday, Polish state news agency PAP reported.
Reporting on the NBP’s activities in 2021, Glapiński said: “Monetary policy will continue to be conducted in a responsible way, namely to curb inflation and help Poland maintain stable economic growth.”
The NBP chief added that the bank had continued to tighten monetary policy this year as its priority is to contain inflation.
Glapiński told MPs: “However, it should be remembered that inflation caused by strong supply shocks must be reduced gradually, especially amid an expected fundamental economic slowdown, in order not to generate excessive social costs, above all sizable unemployment.”
The NBP chief said that interest rate hikes had increased the burden on the budgets of indebted households.
At the same time, salaries have grown "relatively steeply, which largely makes up for the higher interest rates," he said.
“And so the increase in the cost of credit does not automatically have to lead to problems with payment, which is reflected in statistics,” Glapiński also said.
He argued that the government’s financial support for mortgage borrowers “should be restricted to those in distress and not made available to everyone.”
According to Glapiński, "the Loan Customers’ Support Fund will ensure that help reaches those in need."
The National Bank of Poland "believes that better targeted support would reduce incentives to abuse the system, limit the banks' costs and be more advantageous to the state budget,” Glapiński told lawmakers.
Inflation in Poland stood at 15.5 percent in year-on-year terms in June, the country’s Central Statistical Office (GUS) reported last week.
Earlier this month, the Polish central bank’s Monetary Policy Council raised key interest rates for the 10th consecutive time in an effort to tame surging consumer prices.
(pm/gs)
Source: PAP, businessinsider.com.pl