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Poland Must Keep Raising Rates, New Central Banker Says

  • Kotecki, new policy maker, vows to fight until inflation slows
  • Kotecki just joined central bank’s Monetary Policy Council
A customer shops for food at a market hall in Wroclaw, Poland.

A customer shops for food at a market hall in Wroclaw, Poland.

Photographer: Bartek Sadowski/Bloomberg
Updated on

Poland has no alternative to aggressive monetary tightening as the government’s actions to control rising prices may only stoke further inflation, a new central bank policy maker said. 

Tax cuts on everything from fuels to food could trigger a delayed surge in prices, Ludwik Kotecki said in an interview, suggesting the measures compound already high budget spending. That shoulders the central bank with the task of stepping up rate increases to curb inflation, he said.