Adam Glapiński was speaking a day after the panel raised key interest rates for the 10th consecutive time in an effort to contain surging consumer prices.
Glapiński told reporters: “We can’t tolerate inflation.”
He noted that rising prices “have an insidious and destructive effect on the economy.”
“We’ll keep raising interest rates until inflation is subdued,” he vowed at a news conference.
Inflation to peak this summer?
Glapiński said that, according to his National Bank of Poland's latest forecast, to be published next week, inflation "will peak during the holiday period" and "will slowly fall afterwards.”
He stated: “A weakening of economic activity and a gradual easing of shocks will lead to a stabilisation of market prices.”
He added that, according to the NBP forecast, inflation will keep falling in 2023 before returning to its target level in 2024, Polish state news agency PAP reported.
Meanwhile, Poland's GDP is expected to grow by 1.5-2 percent, he said.
Glapiński stressed that the forecast may change depending on the situation, and that "if inflation keeps rising, rate hikes will continue."
He stated: “Hopefully, Poland will avoid stagflation. It may occur in many countries, but hopefully Poland will manage to keep growing at 2 percent of GDP, while inflation falls."
Inflation in Poland stood at 15.6 percent in year-on-year terms in June, the country’s Central Statistical Office (GUS) said in a flash estimate last week.
(pm/gs)
Source: PAP, finanse.wp.pl
Click on the audio player above for a report by Radio Poland's Piotr Miszczuk.