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For Polish central banker Jerzy Kropiwnicki, the inflation outlook has barely changed as a result of the government's intention to raise the minimum wage.
“Some initial calculations indicate the plan won't boost inflation significantly,” Kropiwnicki said in an interview. “This means consumer-price growth will remain mainly cost-related.”
His remarks back the view of central bank Governor Adam Glapinski, who last week rejected concern that inflation pressure may intensify as minimum salaries are lifted by 78% over four years.
The Monetary Policy Council left its benchmark interest rate at a record-low 1.5% this month. Despite inflation hitting a seven-year high, economic expansion is dipping, both at home and elsewhere in the world, prompting the biggest central banks to turn dovish.
“A global slowdown clearly isn't the best time to tighten monetary policy,” Kropiwnicki said.
To contact the reporter on this story: Dorota Bartyzel in Warsaw at dbartyzel@bloomberg.net
To contact the editors responsible for this story: Andrea Dudik at adudik@bloomberg.net, Andrew Langley, Wojciech Moskwa
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