Second Polish Presidential Candidate Advocates for Lower Interest Rates
Growing Calls for Interest Rate Cuts in Poland
Warsaw, Poland – A second candidate in Poland’s upcoming presidential election has joined the call for lower interest rates, igniting debate over monetary policy and economic growth.
Hołownia Pushes for Rate Reductions
Szymon Hołownia, Speaker of the lower house of parliament and the Third Way party's candidate, urged the National Bank of Poland (NBP) to consider cutting interest rates. He shared his request via a letter on social media Friday, emphasizing the potential benefits for the Polish economy.
“I firmly believe that reducing interest rates would provide a significant boost to the Polish economy by encouraging investment, job creation, and increased demand,” Hołownia stated in his letter addressed to the NBP governor.
Trzaskowski’s Earlier Appeal
His stance follows a similar call from presidential frontrunner Rafał Trzaskowski, the candidate representing Prime Minister Donald Tusk’s Civic Coalition (KO). Trzaskowski advocated for rate cuts in mid-January, arguing that lower borrowing costs would stimulate economic growth and ease financial burdens on citizens.
Current Economic and Monetary Policy
Currently, the NBP has maintained interest rates at 5.75% since October 2023. Central Bank Governor Adam Glapiński reaffirmed in February that there are no immediate grounds for lowering borrowing costs, citing ongoing economic conditions.
Poland’s inflation rate stood at 5.3% in January, still above the central bank’s target range of 2.5% ± 1%. The central bank has yet to respond to Hołownia’s request but has previously asserted that monetary policy decisions are made collectively by the Monetary Policy Council (MPC) and should remain independent of political influence.
Impact on Currency and Upcoming Elections
The debate over interest rates comes amid the Polish currency’s recent surge. On Thursday, the zloty reached its highest value against the euro in a decade, partly attributed to Poland’s high-interest rates.
With the presidential elections set for May, economic policies, particularly interest rates, are becoming a focal point in the campaign, drawing attention from both policymakers and the electorate.
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Stay tuned for more updates on Poland’s economic and political landscape.
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