Central bank head expresses calm about inflation

Paweł Supernak/PAP

There are no indications of an inflation rise, National Bank of Poland (NBP) head Adam Glapinski said on Friday responding to rumours of an inflation outbreak in Poland.

Glapinski told an online conference that forecasts see a further decline in base inflation.

"I fail to understand the reasons for the concern some commentators show about an alleged inflation rise," Glapinski said. He added that if anything gave cause for worry, it was a visible reverse trend.

"Base inflation has declined significantly and the forecasts we have indicate the trend will continue this year," Glapinski said.

Glapinski said there was "no chance" of the NBP raising interest rates in the coming two years, the remainder of the Monetary Policy Council's current term. He added that negative rates were possible if needed, but stressed that further rate cuts would be considered only in face of a "radical deterioration" of current conditions.