The financial system is not worried, says the head of one of Poland’s largest banks

Poland’s central bank governor has allayed short-term concerns about rising prices, as some central banks in the region have begun raising interest rates to curb rising prices.

Adam Glapinski said this is not a concern at the moment, and sees inflation driven by short-term and external factors such as startups, as well as oil prices. So far as the second EU rise, annual inflation reached 4.7% in May, less than 4.4 percent in June.

“When we subtract the high prices for capital and revenue we find that inflation is close to 2.5%, which is the area we want to pursue,” he told the Financial Times. “So at the moment there is no reason to fear, especially since we are also expecting a slowdown in the economy.”

Inflammation has been he added in many countries when anti-epidemic laws have been repealed, prompting some economists to call on central banks to address the incentives that emerged during the crisis. Central banks in Hungary and the Czech Republic have both raised prices last month.

Glapinski said the central bank, Narodowy Bank Polski, would look “more cautiously” on the signs that inflation was raising prices because the economy was growing after the epidemic failed. It is expected that the Polish economy will grow by more than 5% next year.

“If we see that there is a tendency that in a few places inflation can be driven by these important factors, then we will take action. When will it happen? It is difficult to say for sure, but not earlier than the fall of this year.

“Our approach is similar to that of the Federal Reserve, or ECB: we are waiting for the economy to become more stable and resilient, and then we will see if there is an economic risk. And we will not procrastinate: we will take immediate action if necessary.”

Some economists say the NBP should already take action to reduce inflation, as the labor market in Poland is showing signs. Unemployment, stands at 3.8 percent of the workforce, with some very low in the EU, according to Eurostat.

“We have a small number of unemployed people, who are under pressure to pay. And on top of that, Performing in Poland [a government programme of tax and spending pledges] it will help the need, “says Alicja Defratyka, an economist at ciekaweliczby.pl.

He added: “I think inflation could be between 4.5% and 5% by the end of this year, and it could be much bigger if everything that can happen in the Polish Covenant works.”

We expect the economy to become stable and stable, and then we will see if there is a risk of inflation

Glapinski said the NBP does not have “any problems” in the labor market, and that number of employees from neighboring Ukraine and Belarus “will be enough to deal with the growing workforce” in the coming years.

“Obviously we are looking to see if there are any problems in the labor market, but so far we are not overly concerned with wages. Wages are rising – but slower than yields. Operating costs are not going up, ”he said.

He added: “The biggest risk could be inflation but the risk is small. We don’t have this, and at the moment we don’t see it happening in the future. We don’t see it happening next year.”

Economists have also expressed concern about the economic crisis that is driving the country. However, Glapinski said Polish banks had a lot of money, and that the real estate market did not fluctuate.

“Currently there is no foam show in the commercial sector that has brought low interest rates. And we are not expecting it, ”he said.

“Please note that the low interest rate has been available for a very short time, and depending on the market expectations for next year we will start to leave the area. And door-to-door canvassing is much longer. ”