No decision to end tightening cycle yet, says central bank head

Poland's central bank (NBP)’s rate-setting Monetary Policy Council (RPP) is not yet discussing ending the tightening cycle, the NBP governor has said.

"We have not made a decision to end the cycle of interest rate hikes, there was no such discussion at all," Adam Glapiński told a press conference on Thursday.

He added that the recent strengthening of Polish zloty had had a positive impact on the decline in inflation.

"The zloty exchange rate up by 10 percent lowers inflation by 0.4 percentage points. It's not much, but it's important. If this continues, for which we keep our fingers crossed, the inflation rate at the end of the year will be lower," Glapiński said.

He assessed that the inflation projection prepared by the NBP was correct.

"The important element for us is when inflation drops below 10 percent. According to the projection, everything indicates that inflation at the end of the year should hit between 7 and 9 percent," Glapiński added.