Goldman Sachs predicts 75-bps interest rate hike in July – The First News

Analysts at investment bank Goldman Sachs (GS) have predicted a 75-basis point increase in interest rates at the next sitting of Poland’s Monetary Policy Council (RPP), scheduled for July 7.

Goldman Sachs’ analysts cited inflation, reported by the Central Statistical Office (GUS) on Friday at 15.6 percent in May, saying that it was difficult to predict when inflation would peak or at what level but warning that core inflation may continue to rise until the end of the year. GS had predicted May’s inflation rate to stand at 16 percent year on year.

“The growth resulted from higher fuel inflation, which rose by 10.3 percentage points (pps) to 46.7 percent year on year, and also core inflation, the domestic measure of which increased, in line with our estimates, by 0.7 pps to 9.2 percent year on year,” the analysts said.

“According to our forecasts, inflation is nearing a local peak in the coming months,” they added.

The bank predicted the Monetary Policy Council would raise interest rates by 75 basis points to 6.75 percent.