Global inflation based on speculation in commodities - NBP head
October 29, 2012
Global inflation remains a pure function of commodity market speculation, Poland's central bank NBP head Marek Belka said at the congress of listed companies' management boards.
"At this moment if inflation is elevated around the world, it is only because of speculation in commodities, that have become typical investment assets which they never had been," Belka said. "We do not see other reasons for inflation tensions."
Poland's central bank continues to suffer inflation well above its 2.5% policy target and even beyond the 1 ppt tolerance band. Inflation has been above that 3.5% threshold since January 2011.
Poland's Monetary Policy Council is currently expected to overlook the inflation overshoot and open an easing cycle to address weakening growth when rate setters gather this week.
According to Belka despite the larger euro zone crisis Poland's MPC remains in a "normal" policy regime.
"There is no crisis in Poland and monetary policy in Poland is not adjusted to crisis times," Belka said.