WARSAW (Reuters) – Poland may raise interest rates by another 200-400 basis points, Poland’s central bank governor Joanna Terewicz was quoted as saying on Friday, a tightening as many economists say the tightening cycle is coming to an end.
Poland’s interest rate makers are weighing inflation, which has risen to a quarter-century high, against an economic slowdown that has led some policymakers to say the scope for further increases is limited.
“We are talking about a 2-3 (percentage point) rate hike, perhaps by 4 percentage points at most… after assessing the scope of the effectiveness of previous increases,” Terwich was quoted as saying by the state news agency. Door.
In September, Poland’s central bank raised its key interest rate by 25 basis points to 6.75%.
However, Tyrowicz said Poland may need a more “radical” approach.
“Continuing a 25 basis point increase in subsequent sessions would not be a reasonable strategy,” she said.
However, she said, the need for higher borrowing costs did not necessarily mean higher interest rates in October.
“There is no doubt that the rates should be raised, (but) whether they should be raised in the next session is an entirely different matter,” she said.