By: The Quinnipiac University Economics Research Team, Jack Hangen
Poland’s Monetary Policy Council recently decided to increase interest rates as a means of counteracting rising inflation. Recent studies found that inflation is approaching 5.8%, prompting Poland to increase interest rates from 0.1% to 0.5%. These interest rate hikes are also followed by several former Polish bank officials urging for interest rate adjustments to occur; however, these changes were reported to have caught economists off-guard. This “shock” amongst economists was largely driven by these interest rate increases being the first to occur since 2012. Nonetheless, Polish officials support these changes, citing that they are necessary to counteract increased inflation rates. These monetary policy changes are also occurring in other Central European countries as they each struggle to curb inflation.
This article is based upon: https://www.polskieradio.pl/395/7786/Artykul/2821346,Poland-raises-interest-rates-to-curb-inflation