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Polish central bank makes 11th rate hike to curb inflation

07.09.2022 17:10
The Polish central bank’s Monetary Policy Council on Wednesday increased key interest rates for the 11th consecutive time in an effort to contain surging consumer prices.
Polish central bank chief Adam Glapiński.
Polish central bank chief Adam Glapiński.PAP/Radek Pietruszka

The reference rate went up by 25 basis points to 6.75 percent, from 6.50 percent, amid rising inflation, which hit 16.1 percent in August, according to a flash estimate by the country's Central Statistical Office (GUS).

Poland's government in June began offering new high-yield savings bonds to the public to offset the impact of inflation.

Prime Minister Mateusz Morawiecki in the spring set out a range of policies to protect borrowers from the effects of inflation and rising interest rates.

He has told reporters that much of the inflation in the country is due to Russia's war against Ukraine, while also accusing Russia of seeking “to drive up inflation in Europe.”

Morawiecki said in late April: “Russia has not only made a brutal, murderous attack on Ukraine … it has assaulted the energy and food security of all of Europe.”

The Polish central bank in March predicted that inflation in the country would stand at 10.8 percent in 2022 on average, followed by 9 percent in 2023 and 4.2 percent in 2024.

Poland's government in mid-March came up with a raft of measures to mitigate the impact of Russia’s invasion of Ukraine on the Polish economy and society.

Central bank chief Adam Glapiński earlier this year vowed to do all it takes to ensure a lasting reduction in inflation.

(pm)

Source: PAPbusinessinsider.com.pl