Poland’s Response to Runaway Inflation Lags East EU Peers

(Bloomberg) -- Hawkish rhetoric from Czech and Hungarian policy makers is underscoring the danger that Poland’s central bank will be left further behind in the fight to tame consumer price growth. Indeed, Polish rate-setter Eryk Lon has even said it would be “particularly risky” to raise the key measure by 100 basis points in January, a move the Czechs made this month. With annual inflation accelerating to 7.8% in November, Poland’s assets are losing their appeal: at minus 6.05%, its real interest rate is among the lowest in the world.

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