Adam Glapiński told reporters on Thursday that the rate-setting panel's mandate is to combat inflation, not to influence mortgage rates or support the housing market.
Speaking at a press conference following Wednesday’s decision to lower the National Bank of Poland’s reference rate by 50 basis points to 5.25 percent, Glapiński said the move was justified by signs of weakening wage pressure and a cooling economy.
“We do not respond to the needs of mortgage holders,” Glapiński said. "That is the responsibility of the government, parliament, financial regulator and banks. Our task is to fight excessive inflation."
He added that almost all public commentary on the rate cut had focused on mortgage borrowers, despite the central bank having no mandate in that area.
"Ninety-nine percent of commentary focused on mortgage holders, which is something we don’t address at all,” he said.
According to Glapiński, pressure on the Monetary Policy Council to cut rates came not only from borrowers but especially from real estate developers, who had been left with an estimated oversupply of 60,000 unsold apartments after the government failed to launch a widely expected support programme for home buyers.
"Increased lobbying efforts from developers were aimed at the central bank, hoping that lower rates would expand access to credit and increase demand,” he told reporters.
Glapiński argued that interest rates are set based on macroeconomic data and inflation forecasts, not on the situation of individual sectors.
"We will continue to base our decisions on incoming data and projections,” he said, adding that "the goal remains to bring inflation down" to the central bank’s target of 2.5 percent within two years.
Wednesday's cut marked the first change in interest rates since October 2023, when the reference rate was set at 5.75 percent.
Glapiński was careful to stress that this week’s decision does not signal the beginning of a new cycle of cuts, but rather a calibrated response to evolving economic conditions.
He also pointed out the fiscal implications of interest rate movements, saying that every 1 percentage point cut in rates reduces Poland’s debt-servicing costs by PLN 6.3 billion, while every 1 percentage point rise in inflation brings PLN 16.6 billion in extra revenue to the state budget, state news agency PAP reported.
(rt/gs)
Source: IAR, PAP