Polish Prime Minister Mateusz Morawiecki said that by the end of 2023 inflation will fall so significantly that there might be a chance for interest rate cuts.
"If there are no absolutely exceptional events, inflation will fall until the end of the year and there is hope for a rate cut in the fourth quarter of 2023," he said on public radio.
Poland's main interest rate has been at 6.75% since September 2022 and the central bank has not officially ended the tightening cycle it began in 2021.
But with inflation looking to have peaked in February, markets are focusing on when the cost of credit will start to fall.
In April, inflation was 14.7% and many Polish central bankers expect it to fall to single digits in 2023.
(Reporting by Pawel Florkiewicz; Editing by Sharon Singleton)