Poland's central bank not predicting recession

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Poland's central bank not predicting recession

The central bank of Poland, the National Bank of Poland NBP, does not predict a recession in the country, but economic growth may fall to zero, according to the central bank governor.

After an interest rate decision a day before, Adam Glapinski said at his monthly press conference on Thursday that Poland should not see a recession despite weakening sentiment.

Glapinski said that we are not predicting a recession in Poland, but it could happen if we go down to the GDP growth rate around zero. We think it will be at least 0.7 percent, but there are many factors involved in our projections. Glapinski predicted that Poland's consumer price index, the CPI, will go up in January and February but will fall from March or April.

It will be a permanent process. According to Glapinski, inflation should fall to the single-digit area by the end of next year.

Glapinski said that if other circumstances don't change, we'll be down to single-digit inflation between six and nine percent by the end of next year. The Monetary Policy Council RPP, the main interest rate, is less than November's 17.4 percent CPI figure, as it keeps interest rates unchanged for the third month in a row.