Poland's inflation to go down gradually says rate setter

Inflation in Poland will gradually decrease by several percentage points this year from its recent level of 17.2 percent, the Monetary Policy Council (RPP) said in a statement after its rate decision.

The RPP kept all the interest rates unchanged for the sixth time in a row on Wednesday, with the reference rate remaining at 6.75 percent.

The RPP said in a statement issued after its rate decision that "there is a 50-percent probability that the annual price growth will be in the range of 10.2–13.5 percent in 2023."

"At the same time, the annual GDP growth – according to this projection – will be with a 50-percent probability in the range of -0.1–1.8 percent in 2023," the rate-setter added.

According to RPP, "the weakening of external economic conditions, together with a decline in commodity prices, will continue to curb global inflation, which will contribute to lower price growth in Poland."

Commenting on its to-date interest rate hikes, the Council said that they "will lead to a decline in inflation in Poland towards the NBP inflation target."

"At the same time, given strength and persistence of the recent shocks that remain beyond the impact of domestic monetary policy, the return of inflation to the NBP inflation target will be gradual," RPP said.