Staff of Reuters 3 minutes Read this article (Adds details) Reuters, 4 July – Governor Adam Glapinski said in a Financial Times interview published on Sunday that demand-driven inflation, which would necessitate a response from the Polish central bank, may occur in the autumn or possibly mid-2022. However, Glapinski stated that current inflation levels are not concerning. In June, central banks in the Czech Republic and Hungary raised rates in response to a surge in inflation, while the National Bank of Poland maintained its dovish stance, claiming that the underlying issues were transient and unaffected by monetary policy. “If we observe a trend indicating this growth in pricing could be driven by these demand-side reasons in a few quarters, then we will act,” he was reported as adding. “When is it going to happen? It’s difficult to estimate when, but it won’t be before the autumn of this year. Or perhaps perhaps halfway through the following year.” According to a flash estimate from the statistics office, monthly inflation in Poland was 4.4 percent in June, lower than economists predicted and down from 4.7 percent in May. It was still significantly beyond the central bank’s target range of 2.5 percent plus or minus 1%. Glapinski reaffirmed that regulatory and supply-side variables were driving inflation at the moment, and that when these were removed, inflation was closer to the target range’s midpoint. “Our strategy is similar to the Federal Reserve’s or the European Central Bank’s: we’re waiting for the economic recovery to become clear and robust, and then we’ll see if there’s a risk of inflation,” he added. “And we will not hesitate: as soon as it is necessary, we will act immediately.” According to the newspaper, Glapinski expects the economy to rise by more than 5% next year. He also stated that rising home prices do not bother him. “At this time, there are no signs of real estate bubbles being fueled by low interest rates. And it’s not something we’re expecting “According to Glapinski, who spoke to the newspaper. (Editing by Clarence Fernandez and Raissa Kasolowsky; reporting by Maria Ponnezhath in Bengaluru and Alan Charlish in Warsaw)/n
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