Poland to see single-digit inflation this year says central bank head

According to Glapiński, Poland will not see a recession this year. Tytus Żmijewski/PAP

Inflation in Poland will go down from January's 17.2 percent to single-digit levels later this year, Adam Glapiński, president of the National Bank of Poland (NBP) has said.

Glapiński made the prediction at a press conference on Thursday, following Wednesday's decision by the central bank's rate-setting body RPP to keep all rates unchanged for the sixth time in a row.

Poland's reference interest rate was kept at 6.75 percent on Thursday.

Despite inflation having reached 17.2 percent in January and expectations of an even higher reading for February, Glapiński claimed that this year the country CPI's will go down to single-digit levels.

"Already this year, in a short time, inflation will decline to a single-digit level," the central bank head said. "According to our latest projection from March, inflation will be slightly above 7 percent, we believe in November it will decline to 7.4 percent."

He admitted this would be a steep decline.

"The 7.4 percent level compared to what we have now is a radical difference," he said.

According to Glapiński, Poland will not see a recession this year.

"According to all available data, we'll not enter into a recession in Poland," he said, adding that the economy will slow down, but will see "a soft landing".

Glapiński also said he expected a quick decline of inflation towards the NBP's target of 2.5 percent plus/minus one percentage point.

Commenting on Wednesday's interest rate decision, Glapiński said that "RPP did not change the interest rate levels and the market expected that.

"No-one expected changes, because the situation of the economy is stable and the situation of public finance is stable," he said.