Polish Central Banker Says Economy Is Heading Into Stagflation
- Inflation isn’t going to peak over the summer, Kotecki says
- Policy maker says latest central bank forecast ‘scared’ MPC
A tram passes pedestrians during afternoon rush hour in Wroclaw, Poland.
Photographer: Bartek Sadowski/BloombergThis article is for subscribers only.
Poland is facing “stagflation” with rapidly slowing economic growth and inflation that may reach 20% next year, policy maker Ludwik Kotecki said, calling it the worst possible challenge for the central bank.
Citing the central bank’s latest forecast, Kotecki questioned Governor Adam Glapinski’s prediction that inflation will peak this summer and pave the way for the end of interest-rate increases. Instead, the Monetary Policy Council will have to contend with the “very unpleasant prospect” of having to fight rising prices at a time of economic stagnation, he said.