NBP: there is still room for further easing

If anyone thought until now that our central bank would stop at the level of monetary policy we have now, they are in [...] https://www.pinterest.com/pin/1085437947660215829/

If anyone thought so far that our central bank would stop at the level of monetary policy we have now, they are wrong. "The NBP still has room for monetary easing," wrote the institution's president Adam Glapinski in an article for the Dziennik Gazeta Prawna. Adam Glapinski: monetary easing is not over Glapiński believes that the NBP still has a lot of room for manoeuvre if the economy continues to fail. "(...) However, should reality verify our hopes negatively, the NBP still has room for further anti-crisis measures, including further monetary easing." - he wrote in an article published in the daily. Despite such announcements, Glapinski believes that inflation will decline in the coming quarters. "Currently, inflation is in line with the NBP's inflation target, although it is slightly above 2.5 percent, but we expect it to decline in the coming quarters," - he forecasts. "The fact that inflation in Poland is currently not as low as in many EU countries is partly related to a relatively faster recovery in demand," - he added. A weak zloty is the target What may worry those buying goods from other countries and the eurozone, the NBP chief added that he himself believes that a weakening of the Polish zloty could be beneficial for the economy. "A factor that could provide additional support to the economy and reduce the risk of deflation would be a stronger adjustment of the zloty exchange rate in response to the global shock caused by the pandemic and a loosening of the NBP monetary policy. (...) It may be estimated that in the current conditions a weaker exchange rate could contribute to a somewhat faster pace of economic recovery," he wrote. - he wrote. Inflation in Poland It seems that the Polish central bank is following the Fed's footsteps. In the USA, the policy of weakening the dollar is also continued. However, in the case of the United States, we are dealing with an incomparably stronger economy and the petro-dollar. In other words, the superpower can afford to print more, because the dollar will always find buyers. When it comes to the zloty, things don't look so good. In Poland, the government is trying to stimulate the economy by lowering the exchange rate. The question is whether such actions will not get out of control... Tags Adam Glapinski central bank NBP