Monetary policy of central banks around the world is increasingly controversial. It’s about interest rate cuts Now member of the Monetary Policy Council (MPC) Kamil Zubelewicz has spoken on this topic.
Zubelewicz: The MPC made a mistake
“Ultra-gentle monetary policy is not needed. It boils down to promoting consumption and social expenses at the expense of savings and investments. In crisis situations, it makes it easier for the state to increase ownership competences, which means that instead of discussing the sense of possible regulations in a given industry, we also have problems with the effective management of joint assets. ”
– Zubelewicz said during the conversation with “Dziennik Gazeta Prawna”. This is the first such strong statement from within the MPC regarding the recent moves of the Polish authorities.
“All the models presented to the Council indicate the zloty undervaluation. The policy of its excessive weakening is incomprehensible to me. Course currency is a risk factor because the last thing we need is to turn society away from the depreciating zloty “
Poles no longer believe in their currency
In his opinion, interest rate cuts were not needed at all. As a result, they weakened Poles’ confidence in the zloty.
“Increased interest in buying foreign currencies was observed, which was reflected in the price of the zloty. I would not share the hope that this will support exports, because what of it, since production in Poland dropped anyway? Rather this will make buying easier assets in Poland by foreign entities. I am afraid of continuing processes weakening our currency. The weakening of the zloty against other currencies and the increase in prices in Poland are the effects of a conscious policy. In times of crisis, the effects of these actions will be more severe. Rapid economic growth could soften these processes. “
In addition, he believes that in the future we are facing further inflation:
“When the economy begins to grow faster, there will be pressure on the Council not to fight against the short-term benefits of some entities inflation. That is why it is important to properly early skillfully this one inflation eliminate. We already had this opportunity once, but unfortunately it was allowed to increase prices by 4.6 percent. on an annual basis. “
According to new, preliminary CSO data, inflation in our country is falling, but only apparently. You can find more about this here.
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