Poland's Interest Rate Debate Sparks Election Tensions

Presidential candidates in Poland, including Karol Nawrocki backed by PiS and frontrunner Rafal Trzaskowski, call for interest rate cuts to ease borrowing costs. Despite rising inflation, the National Bank of Poland remains firm on current rates, sparking debate amid looming elections.

The upcoming presidential elections in Poland have ignited a fiery debate on interest rates, with various candidates clamoring for a reduction. Leading the charge is Karol Nawrocki, backed by the opposition party Law and Justice (PiS), who announced his stance via a video on social media.

Nawrocki joins other prominent candidates, including Rafal Trzaskowski from the Civic Coalition and Szymon Holownia of the Third Way, all urging the central bank to alleviate the financial burden on consumers by cutting the rates. Trzaskowski has been vocal about the need for reduced borrowing costs as a key electoral promise.

However, the governor of the National Bank of Poland, Adam Glapiński, remains resistant, citing high inflation rates as a significant barrier to such policy changes. With annual inflation tethered at 4.9%, the bank holds its ground, despite growing political pressure. The financial policy committee's decision looms, adding tension to the heated electoral race.

(With inputs from agencies.)