Monetary Policy Council member Ireneusz Dąbrowski said on Radio Zet that, based on current data, he sees no need to raise interest rates, at least for now. He said a cut is even less likely than a hike, making it currently the least probable scenario.
Uncertainty ahead of US midterms
Dąbrowski said forecasts are very difficult to make today. He said he is waiting for the US midterm elections on 3 November and for President Trump’s move on Iran after the midterms. He described a ceasefire currently in place between Iran, the United States and Israel.
Forecasts are currently subject to high uncertainty, he said, and the outlook could shift quickly once the vote is over.
Fuel programme and fiscal concern
Dąbrowski said the government’s fuel price reduction programme, CPN, should be continued. The programme is in force until the end of 2026. The article states that the president has signed a law taxing fuel companies, which secures funds for the programme.
He warned that the government is on the edge. If such fiscal policy continues, Poland may get into serious trouble, and the Monetary Policy Council will have to intervene in some way, he said.
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Source: Monetary Policy Council
