Poland’s central bank is raising eyebrows in its justifications for maintaining record-low borrowing costs.
Governor Adam Glapinski has brushed aside concern about the worst economic expansion in three years and an upward shift in inflation surpassing anywhere else in the European Union (EU). Western sluggishness is weighing on growth, he says, while factors beyond the bank’s control are driving prices.
Analysts are skeptical.
“We don’t share the uncritical tone,” said Rafal Benecki, chief economist at ING Bank Slaski in Warsaw. “We see more reasons for the inflation pickup than only those beyond MPC influence, and we argue with attributing the economic slowdown to weakness in Western economies.”
Several claims stood out after the central bank’s latest rate decision on February 5 and could increase the scrutiny of the next policy meeting in March.