Marché Nouvelles

(Bloomberg) -- Improving economic prospects and persistent inflation are likely to prompt Poland’s central bank to keep the country’s interest rates unchanged for yet another month.

The Monetary Policy Council will leave the benchmark at 5.75% on Wednesday, according to all 33 economists surveyed by Bloomberg. The central bank will also publish its latest staff forecasts through 2027, shedding more light on where inflation and interest rates might be headed.

Last year, many policymakers, including Governor Adam Glapinski, sought to tee up the March meeting as the moment when they would start discussing or even deliver a rate cut.

“Today this is no longer the case,” Pekao analysts led by Ernest Pytlarczyk said in a note. He referred to Glapinski’s sudden about-face in December, when the governor unexpectedly delayed cuts beyond 2025.

The sudden shift in tone sparked accusations from the front-runner in May’s presidential election, Rafal Trzaskowski. He suggested Glapinski, who was appointed by the previous nationalist government, was doing the opposition’s bidding.

Parliament Speaker Szymon Holownia also called on the governor to cut rates, saying that “Poland is the European champion of expensive loans.”

Glapinski has repeatedly said he’s acting independently and called on the critics to keep the central bank out of politics. He has also continued to stress the risks of an inflation rebound later in the year because of the government’s plan to remove caps on energy prices.

When the governor addresses the media to explain the decision on Thursday, his stance is unlikely to change. The most recent data showed a recovery in investment at the end of last year, sparking optimism that economic growth won’t be driven only by consumption.

“Monetary Policy Council members will wait for the presidential election and clear information from the government on electricity prices for households,” Bank Millennium analysts led by Grzegorz Maliszewski said in a note.