WARSAW (Reuters) – Poland’s GDP could fall in the first quarter of 2023 and inflation could remain in double digits until the end of 2024, interest rate setter Ludwik Kotecki said on Monday, for that interest rate hikes should be faster and stronger to curb prices. evolution.
The central bank raised its key interest rate by 25 basis points to 6.75% earlier this month, the smallest increase so far in the current rate hike cycle, as it expected lower growth. and inflationary pressures continued.
“I think those increments are too small… we’re going to keep going like that every month. We’ve had 11 increases, I’m afraid we’ll end up with 20 such small increases,” Kotecki said. told private broadcaster TVN24.
“I think a better approach would be to have more strong rallies early this year.”
He pointed to core inflation – around 10% – saying interest rates at the same level would “really slow down inflation very effectively”.
“We won’t have inflation below 10 percent until the end of 2024,” he said.
He added that after GDP fell in the second quarter, he expected it to continue to slow down between 2022 and 2023, especially in the first quarter, GDP will fall.