Poland’s Tusk Faults Central Bank Chief for Slowing Down Growth With Hawkish Policy

(Bloomberg) -- Polish Prime Minister Donald Tusk went on a renewed offensive against central bank Governor Adam Glapinski, saying current monetary policy was holding back economic growth.

Most Read from Bloomberg

• Manchester Is Giving London a Run for Its Money

• Boston’s Broke and Broken Transit System Hurts Downtown Recovery

• A Warehouse Store Promises Housing for South LA, in Bulk

• Biden Invests $100 Million to Fuel Housing Construction

• Johannesburg Mayor Quits Amid Infighting, Financial Woes

Glapinski, an ally of the former ruling nationalists, has been criticized by the premier and his supporters for the alleged politicization of his office, disregard for procedures and failures over inflation. While still an opposition leader, Tusk slammed the governor for a steep interest-rate cut in the run-up to parliamentary elections that triggered accusations that he was trying to help the Law & Justice party win.

With the benchmark rate unchanged at 5.75% since October, Glapinski has taken a hawkish turn, saying last month that easing is likely off the table until 2026 due to risks over price stability. But that position has been questioned by other members of the rate-setting Monetary Policy Council, some of whom have pointed to an expected slowdown in inflation later in 2025.

“There is no doubt that this restrictive, hawkish policy of Governor Glapinski doesn’t make it easier for Poland to achieve the ambitious task of having one of the highest GDP growths in Europe,” Tusk told reporters in Warsaw on Tuesday. “It’s still possible, but it would certainly help a lot if Governor Glapinski thought more kindly about Poland and our Polish needs.”

Glapinski has repeatedly denied accusations of wrongdoing during his time in office.

Still, lawmakers from the ruling coalition have started work aimed at probing him in front of a special tribunal for allegedly misleading the administration over the central bank’s profit and its impact on the state budget, as well as irregularities in the bank’s bond-buying program among other matters.

Most Read from Bloomberg Businessweek

• Inside Worldcoin’s Orb Factory, Audacious and Absurd Defender of Humanity

• New Breed of EV Promises 700 Miles per Charge (Just Add Gas)

• Surgeons Cut a Giant Tumor Out of My Head. Is There a Better Way?

• Kamala Harris 4.0: Liberal, Moderate or Something Else?

• There’s a Gender Split in How US College Grads Are Tackling a More Difficult Job Market

©2024 Bloomberg L.P.