Lowest Spreads and Flexible Terms.
NBP governor on inflation and interest rates. The złoty under pressure
Glapiński: NBP does not influence energy, but will not allow inflation above target to become entrenched
NBP has no influence over energy prices, but it will not allow inflation to remain above target — according to a speech by NBP Governor Adam Glapiński, distributed by the NBP Press Office. The central bank chief stressed that both the sources of the rise in inflation and the impact of more expensive energy on the economy as a whole will matter in future decisions.
Glapiński said the central bank’s primary task remains price stability. As he put it, after many months of low inflation, price growth is set to run above the NBP target in the near term.
The NBP governor described the current environment as hawkish, meaning one that favors tighter monetary policy. In his view, an inflationary mood is spreading across Europe, and the source of the problem is a supply shock tied, among other things, to the situation in the Strait of Hormuz and rising energy commodity prices.
In his speech, he also pointed to actions by other central banks. The ECB (European Central Bank) and the U.S. central bank have already raised interest rates, which, according to Glapiński, is broadening inflationary pressure to further parts of the economy.
The NBP chief admitted that he had previously assumed rate cuts could still happen even at the end of this year. He added, however, that this scenario has now completely faded. His remarks suggest the Monetary Policy Council will also take into account the fact that higher rates curb economic activity and can slow growth when the state is heavily indebted.
Glapiński also said that the NBP has no influence over energy prices, but it must prevent a lasting deviation of inflation from the 2,5 proc., +/- 1 pp. inflation target. He added that the energy shock, which starts with gasoline and gas and then spreads more broadly through economic activity, is feeding through into higher costs across the economy.
The next Monetary Policy Council meeting will end on 7 October. The Council has kept the reference rate at 3,75 proc. since March 2026. At his September conference, Glapiński said that, in the environment of higher energy prices, interest rates may stay unchanged for a long time, perhaps until mid-2027.
Sources
