Poland to experience big economic slump central bank head warns

Poland will experience a strong economic slump in 2023, the head of the country's central bank said on Thursday.

Adam Glapiński told a press conference that the slowdown will bring both a decrease in economic growth and falling inflation.

He added that the current 6.75-percent interest rate level is "adequate for the situation," and he added: "As soon as it is possible, interest rates will be cut. Will it be possible late this year? We'll see."

Steps taken to bring down inflation, which stood at 17.5 percent in November, in a controlled way will cause an economic cooling, said the banker, but he also stressed that it was "very important" for the cooling not be too drastic.

Glapiński called claims that the central bank's rate setting Monetary Policy Council (RPP) had begun raising interest rates too late a "blatant untruth," and said he hoped interest cuts will be possible late this year.

Inflation, he continued, may rise again over January and February, but he expressed hope that it will be in single figures by the end of the year.

The RPP on Wednesday left all interest rates unchanged at 6.75 percent.