Polish policymaker Ivona Duda said that since inflation may briefly break through the central bank's tolerance range, interest rates in Poland will remain unchanged for the rest of the year, and may even last longer. Affected by the risk of inflation brought about by the Middle East conflict, the Polish Monetary Policy Committee has maintained the benchmark interest rate at 3.75% since March. The 10-member committee will hold its next meeting on September 8-9. She said that the expiration of the government's fuel price limit policy and the rise in fertilizer prices will drag down food prices, which previously lowered the overall CPI, and inflation may exceed the central bank's target range of 2.5% ± 1 percentage point by the end of this year. Duda also mentioned that Poland's loose fiscal policy further amplifies the risk of inflation. “Under the benchmark scenario, interest rates will remain unchanged until at least the end of this year,” Duda said in an interview. There is currently no need to immediately tighten monetary policy, “but of course we will take all appropriate measures based on the latest data to prevent inflation expectations from solidifying at a high level.”

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